EXCLUSIVE: Germany backs paying out next Greek aid tranche - letter

BERLIN Wed Dec 12, 2012 9:26pm IST

Related Topics

BERLIN (Reuters) - The German government is in favour of paying out the next tranche of international aid to Greece after a successful debt buyback programme by Athens, Germany's finance ministry said in a letter seen by Reuters on Wednesday.

The letter to the Bundestag lower house said the amendments to Greece's aid package and the successful Greek buyback meant debt sustainability levels were such that Germany would support the payment of its next credit tranche.

Addressed to the head of the Bundestag's budget committee, the letter from Germany's Deputy Finance Minister Steffen Kampeter said the buyback would lead to a reduction in Greek sovereign debt levels of about 9.5 percent of gross domestic output in 2020.

"This means that overall the buyback can be called a success," said the letter, adding that "the other conditions for the payment of further financial help for Greece have been met".

"Against the backdrop of successful amendments to the programme, the status of the programme's implementation, the success of the debt buyback and the debt sustainability analysis based on these, the German government favours paying out the next credit tranche to Greece," read the letter.

(Reporting by Matthias Sobolewski; Writing by Stephen Brown; editing by Janet McBride)

FILED UNDER:

REUTERS EXCLUSIVE

Reuters Showcase

Documents' Leak

Documents' Leak

India widens oil leaks probe to defence ministry  Full Article 

Jim O’Neill Interview

Jim O’Neill Interview

'India can become world’s fifth-largest economy by decade’s end'  Full Article 

Food Security

Food Security

India will not cut multi-billion dollar food handout programme - PM  Full Article 

Bharti-China Mobile

Bharti-China Mobile

Bharti Airtel, China Mobile to collaborate on 4G  Full Article 

Suzlon Energy

Suzlon Energy

Suzlon expects to turn profitable in fiscal 2016: chairman   Full Article 

Eicher Motors Stake

Eicher Motors Stake

Volvo selling up to $300 mln worth of Eicher shares  Full Article 

Rich List

Rich List

Bill Gates tops Forbes rich list, Michael Jordan joins.  Full Article 

Tough Task

Tough Task

India needs sustained GDP growth of 9-10 percent - Jaitley.  Full Article 

Budget 2015

Budget 2015

Budget announcements and reactions from the industry  Full Coverage 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage