Extension of the Memorandum and the debt

In the upcoming Ecofin meeting scheduled in a few days in Brussels, there will be an official discussion between Ministers of Finance on the Greek issue, as discussed in Luxembourg during the previous days.

The Minister of Finance of Greece is absolutely silent and secretive, but there is considerable information coming through that there was a meeting of six ministers from the Eurogroup and the discussion involved an extension of the Greek debt, and subsequently of the Memorandum.

The German proposal involved the Greek bonds that are expiring in 2012 and 2013, a sum of 68 million which belongs to Greek and foreign banks, and private clients, and expire next year. The remaining sum and the deficits of 2012 and 2013 will be covered by the 110-billion loan we are receiving from Troika.

In reality, with this move the Europeans recognise that the Greek economy, no matter what efforts are made, will not be able to bear the burden of the Memorandum which was signed last May and 2010 is a characteristic example since despite all the very strict measures, the Greek Ministry of Finance thought the deficit would be 9,5% and in reality it was 10,4%, which led to more measures for 2011.