U.S. Presses Europe to Take Steps to Reduce Greece's Debt Burden
- Investors need confidence Greece's debt is sustainable
- Servicing obligations are only part of the equation, U.S. says
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The U.S. is pressing euro-area countries to agree to an overhaul of Greece’s debt to give private-sector investors confidence that the nation’s borrowing burden is sustainable, a U.S. Treasury official said.
Europe needs to take action to lower Greece’s overall debt levels, said the official, who asked not to be identified because discussions are in progress. Participation by the European Bank for Reconstruction and Development would also be helpful to restore financial stability in Greece, the official said. The EBRD, which was created to help central and eastern European countries after the Cold War, could lend staff and contribute technical expertise to help the Greek banking system get on firmer footing, according to the official.