Greek government rules out debt restructure

08:19, May 31, 2010      

Email | Print | Subscribe | Comments | Forum 

Greece does not intend to restructure its national debt in the near future or postpone payments to holders of Greek state bonds in the long-term future, Greek Finance Minister George Papaconstantinou said.

In an interview published in Sunday's Eleftherotypia newspaper, Papaconstantinou expressed his confidence that the country will meet the targets agreed with the other European partners and the International Monetary Fund (IMF) to reduce its enormous budget deficit.

"A debt restructure is not an option, as it would be catastrophic for our credibility. It would lead to marginalization from capital markets, more austerity measures and deeper recession," said the minister.

He stressed that no more austerity measures will be introduced in order to achieve the set goals.

"Greece will not need additional measures, especially more painful measures. There is only one option ahead and that is to meet the targets," said Papaconstantinou.

Greece secured a 110 billion euro (135 billion U.S. dollars) financial aid package a few weeks ago to meet its financing obligations and avoid a default.

In exchange, the Greek government pledged to fully implement the measures and the structural reforms in order to reduce the budget deficit from the current 13.6 percent of GDP to less than 3 percent in three years.

Papaconstantinou noted that this year will be the most difficult for Greece, as the country will be in recession but he also expressed optimism that a recovery will start soon.

Despite the harsh measures, the minister added, Greek people understand the need for changes and "sees that there is money available in Greece, money not declared to the Tax Office and money spent unreasonably."

Papaconstantinou's comments were made before three groups of auditors from the European Union and the IMF are due to arrive in Athens by June 15 in the framework of the agreement with Athens to supervise the implementation of the measures and reforms.

According to unconfirmed information, the delegations reaching up to 50 members will probably set up their offices in the Greek Finance Ministry or the Bank of Greece and will cooperate with the Greek government on the fight against tax evasion and the efforts to reduce state expenses. IMF will reportedly focus on waste of funds in social security and health care.

Source: Xinhua

(Editor:张茜)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • The world's first Boeing 787 Dreamliner for delivery arrives at Haneda airport in Tokyo, capital of Japan, on Sept. 28, 2011. The Boeing 787 Dreamliner, whose buyer is All Nippon Airways (ANA), will implement a flight of ANA on Oct. 26 from Tokyo's Narita Airport to Hong Kong in south China. (Xinhua/Ji Chunpeng)
  • A Libyan National Transitional Council (NTC) fighter shows what is believed to be human jawbone found inside a mass grave near Abu Salim prison in Tripoli, Libya, Spet. 27, 2011. The NTC on Sunday said they had found a mass grave containing the bodies of 1,270 people killed by Gaddafi's security forces in a 1996 massacre at Abu Salim prison in southern Tripoli. (Xinhua/Li Muzi)
  • Rescue workers and local residents search for survivors after a building collapsed in old Delhi, India, Sept. 27, 2011. At least 10 people were killed and 35 injured when an old three-storey building collapsed. More than a dozen people are still feared trapped under the debris, police said. (Xinhua/Partha Sarkar)
  • A visitor has flying experience in the windmill castle of Jinshitan National Holiday resort in Dalian, northeast China's Liaoning Province, Sept. 27, 2011. The castle is a 23-meter-high building with 21 meters in diameter. The castle uses wind tunnel to make objects floating in the air. It is the first indoor stadium in China, which enables people to have flying experience. (Xinhua/Zhang Chunlei)
  • Forces of the Libyan National Transitional Council (NTC) shoot shells to the fighters loyal to Muammar Gaddafi outside Bani Walid, Libya, Sept. 27, 2011. Bani Walid is still occupied by fighters loyal to Muammar Gaddafi. (Xinhua/Hamza Turkia)
  • Children present creations with guests during a charity show "Fashion Kids for Children in Crisis" at the Milan Fashion Week Women's Wear Spring/Summer 2012 in Milan, northern Italy, Sept. 27, 2011. (Xinhua/Wang Qingqin)
Hot Forum Discussion