Economics
Euro Area Signals No Major Greek Debt-Relief Deal This Year
- Medium-term relief may be pushed until after German elections
- IMF’s role in bailout hinges on a euro-area debt agreement
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Euro-area finance ministers signaled they may not give a commitment on significant debt relief for Greece before next year’s German elections, dealing a further blow to embattled Prime Minister Alexis Tsipras.
As the euro region’s finance chiefs met in Brussels on Monday, Germany’s Wolfgang Schaeuble led the officials pouring cold water on Greek hopes for a concrete pledge as early as next month on lowering the country’s debt burden in 2018. With governments determined to stop Greece becoming an issue in election campaigns in the Netherlands, France and Germany next year, their stance may push back the decision on easing repayment terms on bailout loans by a year.