European Central Bank chief Mario Draghi said Greece would not get extra time to pay off its debt, calling an extension “tantamount to monetary financing.” The ECB is ready to launch its bond-buying program for Eurozone countries with debt problems if requested, but conditions will be set, he said as bailout negotiations were under way with Spain.
Greek Prime Minister Antonis Samaras was hoping the Troika of the European Union, International Monetary Fund and ECB would give him two more years, until 2016, to meet fiscal targets to lower the deficit from 9.3 to 3 percent and impose more reforms and austerity measures that have set off new rounds of social unrest, but he hasn’t asked for an extension.
Samaras’ uneasy coalition government has tentatively agreed on another $17.45 billion in spending cuts and tax hikes but the Troika has reportedly rejected estimates of savings of some $3.25-$4.55 billion in health care, defense and public sector cuts and will not release a pending $38.8 billion loan installment until a deal is reached and pushed through Parliament.
Draghi added that the ECB did not discuss lowering interest rates in coming months. Analysts have expected the ECB to cut rates below historic lows once its bond-purchase program goes into effect. On Oct. 4 it kept the benchmark rate unchanged at 0.75%.
(source: ANSA)
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