The German government on Monday reaffirmed its categorical opposition to any haircut on Greek debt held by the public sector.
German weekly Der Spiegel reported over the weekend that the troika of the European Commission, the European Central Bank and the International Monetary Fund had called for a new haircut on Greek bonds which would also force public creditors to write-off Greek debt.
“For the federal government a public debt haircut is out of the question,” spokesman Steffen Seibert said at a regular press conference here.
Under German budget rules such a haircut would forbid the government to give any new loans to Greece or sign guarantees for loans given to the country, Seibert said. “This would surely not be in the interest of Greece,” he argued.
German Finance Ministry spokeswoman Marianne Kothe said at the same press conference that it was still unclear if Eurozone Finance Ministers would already be able to decide at their next Eurogroup meeting on November 12 about further aid for Greece. There still does not exist any
written report about the latest troika mission to Greece, she said.
(source: MNI)
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