Greece’s debt problems will be solved by a return to economic growth that will be underpinned by structural reforms, Finance Minister George Papaconstantinou said.
A recent decision to allow an extension of repayments to the European Union and International Monetary Fund will remove doubts about whether Greece can repay its 110 billion euros ($148 billion) of loans under the bailout plan, Papaconstantinou wrote in an article in Imerisia newspaper today. The decision will help Greece return to markets for financing, he said.
“Nevertheless, the terms and times to repay Greece’s debt don’t change its size, which will continue to rise until 2012 and for this reason there can be no relaxation and no delay in containing the deficits which feed it,” he wrote.
The solution to Greece’s debt lies in “the extent and depth of the structural reforms which will be implemented over the next few months with the aim of rationalizing the operation and costs of the state sector and in the fastest possible return to positive growth rates for the economy,” he said.