Tags: EUROPEAN COMMISSION | BARROSO | GREECE | BANKS | BONDS

Greece Demands European Solution to Debt Crisis

Tuesday, 23 Mar 2010 08:54 AM

Greece wants a European solution to its debt crisis and expects positive results from a European Union summit Thursday and Friday, Finance Minister George Papaconstantinou said on Tuesday.

Germany and its EU partners are in disagreement over financial support for Greece, whose debt load is seen hitting 120.4 percent of GDP this year. Chancellor Angela Merkel continued Monday to rebuff calls for a support deal this week.

"Greece is not going to the EU summit as a beggar. There must be a political mechanism to ensure the stability of the euro zone and support the efforts made by every country," Papaconstantinou told an investment conference in Athens.

"We want a European solution," he said.

Merkel, facing opposition in Germany to any bailout for Greece, has said there is no need to discuss an aid mechanism at the summit starting Thursday since Athens has not sought help and that aid would only be a last resort in a case of insolvency.

Papaconstantinou would not go into details regarding the shape financial support could take.

"The worst thing you can do before a summit is to make predictions and scenarios," he said.

He reiterated the government's position that Greece faces no problem funding its debt via financial markets but that it wants to do so at lower borrowing costs.

Greece is paying about twice the rate Germany pays to refinance maturing debt.

The premium investors demand to hold Greek government debt rather than euro zone benchmark Bunds tightened after Papaconstantinou's comments. The Greek/German 10-year bond yield spread narrowed to 330 basis points from around 344 basis points at Monday's settlement close.

"We want to play by euro zone rules. Greece has full access to financial markets as it proved with its recent 10-year bond sale. Obviously, we would like the spreads to fall but I believe this will gradually happen as the stability program is implemented," Papaconstantinou said.

© 2017 Thomson/Reuters. All rights reserved.

   
1Like our page
2Share
Headline
Greece wants a European solution to its debt crisis and expects positive results from a European Union summit Thursday and Friday, Finance Minister George Papaconstantinou said on Tuesday. Germany and its EU partners are in disagreement over financial support for Greece,...
EUROPEAN COMMISSION,BARROSO,GREECE,BANKS,BONDS
316
2010-54-23
Tuesday, 23 Mar 2010 08:54 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved