Greece should not receive debt relief, in which creditors will suffer losses, according to the German Deputy Finance Minister Jens Spahn. IMF wants Greece to be given significant debt relief, but Germany, which has the largest contribution to the budget of the European stability mechanism is against.
“We think it’s very, very likely to reach an agreement with the International Monetary Fund, which does not provide any debt relief”, said Jens Spahn, given the losses that creditors of Greece would suffer if it is written off part of the debt.
Greece and creditors agreed on Monday to continue reforms in Athens, as this week on the south side should be back inspectors from the European Commission, the European Stability Mechanism and the European Central Bank.
The German Deputy Finance Minister said the problem of Greece is more a lack of growth than the debt, and debt relief for Athens confuse other Eurozone members, which must implement difficult reforms.
“Our Spanish friends for example are saying: Wait, that would not be fair. We conduct reforms and not get debt reliefs and you speak to provide such Greece?!”, said Jens Spahn.
The German Deputy Finance Minister highlighted the efforts that Germany is making to keep IMF rescue program for Greece because of the experience of this institution in helping countries must carry out reforms in exchange for financial assistance. A poll published on Friday revealed that around half of Germans are against debt relief for Greece.