Connect with us

Hi, what are you looking for?

Capital Business
Capital Business


Merkel rejects Greek debt restructuring

FRANKFURT, May 17 – German Chancellor Angela Merkel opposes a restructuring of Greek debt, putting her at odds with her own finance minister, the German daily Bild said on Tuesday.

During a discussion with students at the Sophie-Scholl school on Monday in Berlin, Merkel backed aid for Greece and ruled out changes to debt repayment prgrammes for any eurozone countries before 2013, Bild said.

The newspaper did not provide direct quotes by the German chancellor however.

Financial markets have increasingly bet on the possibility that Greece will either extend the repayment period on its debt or decide it must reimburse less than the full amount owed.

On Sunday, German Finance Minister Wolfgang Schaeuble said he could support a longer repayment period if private creditors agreed to it, something known as a voluntary restructuring.

A similar idea has also been given a new name, reprofiling, as mooted on Monday by eurozone finance ministers meeting in Brussels.

Jean-Claude Juncker, head of the Eurogroup of finance minsters told media "I don\’t exclude it," when asked about a possible reprofiling of Greece\’s debt.

But Juncker also stressed that Greece would have to take new measures to raise money on its own before such an option could be considered.

The German finance ministry said Tuesday there were no fundamental differences between the positions of Schaeuble and Merkel.

Advertisement. Scroll to continue reading.

"As far as Greece goes, there is no dissension between the minister and the chancellor," a spokesman said.

That could mean Merkel rejects the notion of a sharp restructuring in the amount of the debt, but might accept an extension of the payment timetable.

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 16 – The World Bank has given the Kenyan government USD 60 Million (Sh6.1 billion) to help combat the deadly coronavirus pandemic...