The implementation of the package of measures to alleviate medium-term debt for Greece was approved by the European Financial Stability Facility (EFSF) Governing Board today, according to a statement by the Fund.
As stated in the Communication, these are the measures adopted by the Eurogroup finance ministers in the Eurogroup on 22 June 2018. It should be noted that these measures concern:
(a) the mechanism for phasing out the increase in the interest margins linked to the loans from the second Greek program since 2018,
(b) the further extension of the grace period for interest and depreciation by 10 years in respect of ESF loans of EUR 96,4 billion; and (c) an extension of the average maturity of the abovementioned loans by 10 years.
"We estimate that the total package of medium-term measures agreed by ministers last June will reduce Greece's debt ratio to about 30 percentage points by 2060. We also expect Greece's gross financing to fall by eight percentage points in the same horizon, "said Klaus Relling, CEO of the European Stability Mechanism and chief of the EFSF.
He added that, in order to ensure that debt relief measures would include incentives for Greece to continue implementing the reforms agreed in the memorandum, the abolition of the interest margin by 2022 would depend on "mainstreaming major reforms implemented within the framework of the the program and the compliance of Greece with the agreed measures and the political commitments for the post-mortem oversight period ".