Germany Wants Greece to Get Financial Buffer, Not Debt Relief:SZ
(Bloomberg) — Cash buffer would be used to settle financial obligations and reduce debt relief from 2019 onwards, Sueddeutsche Zeitung reports, citing unidentified German officials and a document of European negotiators made available to the newspaper.
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According to estimate, for every EU5b provided, debt relief including loan extensions could be reduced by 2 years
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IMF wouldn’t participate in credit program, according to an internal agreement
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Financial buffer would allow Greece to service all loans to European countries and the IMF until 2022, or after the next Bundestag elections because of opposition in German parliament to debt relief
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Existing EU proposal for an EU11b financial cushon would have to be increased
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Proposal is one of several options being reviewed, including one where EU would acquire IMF loans
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