Regling: Euro area to assess Greek debt sustainability in 2015

In an interview to Kathimerini newspaper, ESM Director, Klaus Regling, stated that Euro area finance ministers will examine issue of Greek debt sustainability next year, taking into account reforms progress, uncertainty of current projections and market expectations. 

To this end the ESM Director highlighted the current low EFSF funding cost, stating that the interest on Greek bailout loans from the EFSF will remain at c1.5% for over 30 years and Greece will enjoy a grace period until 2022, with annual savings equal to 4.7% of its GDP. 

Furthermore, Mr. Regling argued that reforms have not yet completed in Greece, but must continue. 

Moreover, he stated that there is uncertainty in Greece, as opposition has fundamentally different views about how to steer country in the future. Finally, the ESM director pointed out that Greece will get the ECCL credit line only after the completion of the last bailout review.