Eurogroup President, Jeroen Dijsselbloem, within the framework of an interview to the French newspaper, Le Figaro, said that before the end of the recovery program, the Eurozone considers providing further financial assistance to Greece within the spring of 2014.
As Dijsselbloem noted, the recovery program is finally becoming more and more effective and the Eurogroup expects to approve the third loan installment.
According to the newspaper Vima, the bailout program that crisis-stricken Greece has been following technically ends in 2014. After that point, the country theoretically will not be getting any financial support by either the EU or the IMF. However, Greece will be able to borrow money from the markets, the huge debts and interest rates as well.
When the Eurogroup president was asked on the possibility of a new reduction of the Greek debt, he highlighted that this would be “deceptively attractive,” given that Greece could easily lose its credibility. He also added that potential investors would be reluctant to invest, while the lenders would want to see their returns.
Dijsselbloem also stated that in about a year the European Stability Mechanism (ESM) will be able to directly support ailing banks, therefore he rejected the possibility of “retroactive” refinancing, as there was no political support.
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