The European Financial Stability Facility (EFSF) approved the implementation of a set of medium-term debt relief measures for Greece, it said in a statement on Thursday, according to ANA.
The measures are those approved by eurozone Finance Ministers at their June 22 meeting and ESFS were also released an explainer of the measures on the European Stability Mechanism (ESM) site.
In its statement on the approval, EFSF estimates that the total package of medium-term measures agreed by ministers last June should lead to a cumulative reduction of Greece’s debt-to-GDP ratio of around 30 percentage points until 2060. We also expect Greece’s gross financing needs to fall by around eight percentage points in the same time horizon.
The step-up interest rate margin applies to the € 11.3 billion loan instalment of the EFSF programme for Greece, which was used to finance a debt buy-back in 2012. A margin of 2% had originally been foreseen for 2017 onwards (under the short-term debt measures, the EFSF waived the margin for the year 2017). The deferral of interest and amortisation means that Greece will not start repaying most of its EFSF loans until 2033, and the new weighted average loan maturity will be 42.5 years.
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