Greece Needs Two-Year Extension on Fiscal Pledges: Samaras

By A. Papapostolou on September 15, 2012 in Economy, News, Politics

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 0  New Greece needs a two-year extension from its international creditors to meet fiscal pledges, and a liquidity boost from the European Central Bank, said Prime Minister Antonis Samaras.
In a Washington Post interview appearing in Greece on Saturday, Samaras said the recession-hit country was determined to adopt a new austerity package worth 11.7 billion euros ($15 billion) to avoid leaving the eurozone.
But he said the programme should apply over four years instead of the currently agreed timeframe of two years — his most specific extension request in weeks.
“Instead of the 11.7-billion-euro package taking place over two years, it would be best if it were to take place over four years,” the prime minister said.
“We are talking about an extension to 2016,” he said.
Samaras had asked for a two-year extension prior to his election in June, but had since made more general requests for “breathing space” in meetings with EU leaders over the last month.
In his interview, Samaras said the money was needed to recapitalise Greek banks and pay more than $6 billion that the state owes to the private sector.
And with Greece excluded from borrowing on financial markets, the prime minister said the country needed to get liquidity through the ECB.
“The ECB provides liquidity, either through bonds or through the Emergency Liquidity Assistance programme,” Samaras said.
“Other countries have access to the markets, whereas Greece does not. Therefore, we have to get liquidity through the ECB,” he said.