The head of the European Stability Mechanism Klaus Regling revealed that he will present his proposals for short-term debt relief for Greece in the next few weeks.
In his interview for French newspaper Les Echos, Mr. Regling underlined three aspects of these short-term measures, the first of which is the normalization of the Greek debt repayment periods. This, he added, is already taking place and estimated that the average debt maturity is 28 years, which could potentially increase to 32 years.
The second step is reducing the interest rate risk, namely to protect Greece for future interest rate growth. Finally, Mr. Regling pointed out that there is a huge interest rate increase in a small part of the Greek debt in 2017, which he intends to ‘eliminate’, saving hundreds of millions of euros.