The European Stability Mechanism (ESM) and the European Financial Stability Facility (EFSF) have the current low interest rates with some long-term bond issues in recent month’s bonds, in favour of Greece, the ESM’s Secretary General Kalin Anev Janse said in an interview with Market News International (MNI) on Friday.
“The most important factor is how the EFSF and ESM are already helping the programme countries with our favourable lending rates. If you look at Greece for example, it currently pays the ESM/EFSF a rate of less than 1 pct, which is a very attractive rate for them. It is much less than what the IMF charges. We have done internal calculations, and we know that for Greece by borrowing through us – rather than going to the financial market – gives them an annual saving of around 8 billion euros, which is approximately 4 pct of GDP on an annual basis,” Janse said.
“With some of the longer-term bonds that we have issued in past months, we have locked in the current low interest rates, which are another benefit. Of course the goal of the new ESM programme is that Greece must return to the bond market itself,” he added.
(Source: ANA-MPA)
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