Greece reels under a heavy €320bn debt now.
Greece had been substantially assisted twice to sustain the overwhelming debt burden. German Chancellor Angela Merkel said further debt concessions to Greece will be considered only after new economic reforms are worked out. The third bailout will be in the form of reduced interest rates and extended maturity dates. Definitely there won’t be a debt write-off. The discussions about granting Greece a third economic assistance opened up different views among 19 countries that use the euro. The Eurogroup is an informal group represented by each country’s Finance Minister.
France opts for the creation of Eurozone government. Francois Hollande moots out “a specific budget as well as a parliament to ensure democratic control” of the eurozone.
Germany the largest contributor to Greek rescue funds has taken a tough stance. IMF and Greece plead for a restructuring of debts as the current economic position is “unsustainable”.