Greece: Improved Debt Sustainability
The EU Summit agreed a maturity extension and a reduction in the interest rates on both existing and new loans provided by the EFSF.
In addition, the private sector agreed to exchange the debt maturing between 2012 and 2020 on the basis of four options.
This implies significant savings in terms of interest payments for Greece.
In addition, the debt maturity lengthening will give Greece more breathing space to adjust its finances and, more importantly, a longer time to implement privatisations, which will go towards debt reduction.
Overall, this significantly improves Greece's debt sustainability.
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