Tags: wilbur ross | greece | deal | debt

Wilbur Ross: Greece Will Eventually Forge Deal With Creditors

By    |   Monday, 08 Jun 2015 03:45 PM

Investor Wilbur Ross, CEO of WL Ross Holdings, predicts Greece will forge a deal with creditors by overcoming the hurdles of pension and tax reforms.

"I think the real sticking point is not debt forgiveness. I think its the pensions and to a lesser degree the VAT tax on the electricity," the chairman and chief strategy officer of WL Ross & Co. told CNBC.

"The issue is whether Greece will make some reforms that give the political cover to the other countries to go along with the debt forbearance."

Greece's radical-left government and its creditors — the International Monetary Fund, the European Union and European Central Bank — have been negotiating for five months on reforms needed to unlock 7.2 billion euros ($8 billion) in rescue funds that Athens desperately needs, AFP reported.

The Greek debt drama has been "overplayed" by the press, Ross said. Greece accounts for about 2 percent of European Union GDP and imports just $50 billion worth of goods from the rest of the EU, he said.

"That's big relative to Greece. Greece has only got 11 million people, but 50 billion euros ... is a drop in the bucket for the EU," he said.

Global pressure is mounting to reach a deal to avoid any shocks to world financial markets.

President Obama and German Chancellor Angela Merkel led calls Monday for a swift resolution to Greece's protracted bailout talks, the Associated Press reported.

At the end of a G-7 summit in Elmau, Germany, Obama said there was a "sense of urgency" to resolve the situation.

"What it's going to require is Greece being serious about making some important reforms," Obama said. The Greeks, he added, will have to "make some tough political choices that will be good for the long term."

Merkel warned time was running out, and that while Greece's euro partners want the country to remain in the eurozone, Athens has to do its part by implementing reforms.

"There's not a lot of time, that's the problem, that's why we have to work as intensively as possible," Merkel said.

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Investor Wilbur Ross, CEO of WL Ross Holdings, predicts Greece will forge a deal with creditors by overcoming the hurdles of pension and tax reforms.
wilbur ross, greece, deal, debt
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2015-45-08
Monday, 08 Jun 2015 03:45 PM
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