Samaras: "Eurobond or repurchase of government bonds"

With increased concern, New Democracy is watching the negotiations within the European Union on the matter of addressing the Greek debt crisis in view of the EU summit.

The New Democracy party fears that “the absence of negotiations on the Greek government’s part might lead to negative developments for our country”. Such a development will be - according to the 'Blues’ leadership ”- the participation of private investors in the risk of government bonds, a possibility that the Greek government has not ruled out.

The chairman of the party, Mr. Antonis Samaras is insisting that a solution must be sought through the Eurobond or the repurchase of Greek bonds from the secondary market, with the simultaneous assurance of a restart of the Greek economy, otherwise the country will not be able to exit the crisis.

In his statement today, Mr. Samaras is highlighting the need for the EU to show determination in finally tackling the debt crisis and promote solutions without a “selective default” or private participation in the bonds risk.

The EU “must actively assist the member states who have a problem both for compassionate reasons and towards the reduction of the risk of the crisis extending within the rest of Europe and beyond”, stated Mr. Samaras, and explained his objection to private participation: “The participation of private individuals in the risk of government borrowing has been the wrong choice since the start, which escalated the lending cost for weaker countries and is still carrying the crisis everywhere. Selective default is no solution. It is what we must avoid, since it worsens the problems of liquidity for countries such as Greece and leads to huge uncertainty and certain deterioration”.

The president of the party noted that there are solutions available: “There is always the Eurobond solution, so that countries with a problem can pay off their loans with better terms to themselves, which will in turn make their debt more sustainable. The Eurobond will allow for a reduction in interest rates and a further extension of debt repayment without the chance of a selective default. In the short-term, there is also the solution of buying back bonds from the secondary market, which will reduce public debt, once more avoiding selective default”.

In closing, Mr. Samaras stresses that beyond such solutions, there is always the need to stimulate the development of countries in the region which are sinking into recession. Especially for our country, he states that Greece is not asking for “preferential treatment”, but for the opportunity to restart its economy, so that it can prove reliable in its obligations: “Without a fiscal restart, much as the lending terms may change, our country will not be able to exit the crisis”.