Merkel Holds Out Prospect of Limited Greek Debt Relief

German Chancellor Angela Merkel held out the prospect of limited debt relief for Greece if it follows through on the terms of a third bailout, while insisting that Greek membership in the euro precludes a debt writedown.

Nations in the 19-member currency union will consider extending maturities and reducing interest rates on Greek bonds only after the first assessment of whether Greece is meeting pledges for more austerity and overhauling its labor market, the German leader said -- “not now, but then.”