EU agrees to roll over Greek debt

Posted on 14 March 2011 by Venetia Aftzigianni

After long discussions, the EU summit meeting finally came to an end, concluding to the rollover of the 110 billion euro EU loan for 10 years, along with a cut in the interest rate by 1% relatively to the current rate. The Greek PM George Papandreou stated that the profit by this reduction of the interest rate surpasses 6 billion euro.

The conditions for this favorable regulations are not yet announced. However, according to Mr. Papandreou, the Greek fiscal consolidation program includes structural reforms, privatization plans and use of public property of 50 billion euro.

At the same time, a financial aid of 440 billion euro is also agreed to be given by the European Financial Stability Facility. Moreover, the Greek PM refered to the acknowledgement of Greek effords and to his refusal towards a constitutional regulation of the amound of the deficit and the debt.