The chief of the European Support Mechanism Klaus Regling stated that he cannot guarantee the success of the Greek bailout program, while noting that the upcoming elections must lead to greater political stability.
Mr. Regling further argued that the ESM should not be expected to pay the 86 billion euros of the new bailout program, adding that Christine Lagarde has stated that the International Monetary Fund will also participate in the bailout. The EMS chief estimated that the IMF may provide 16 billion to Greece.
Regarding the possibility of debt relief Mr. Regling commented that while it may be possible to discuss extending the maturities of Greek bonds in October, the nominal write off of the Greek public debt is out of the question.
