The Eurozone and the International Monetary Fund (IMF) agreed on Tuesday night to reduce Greece’s debt to 124 percent of GDP by 2020, European sources said, a decision that paves the way for the unlocking of financial aid to Greece.
After twelve hours of negotiations, the finance ministers of the Eurozone and the IMF agreed to reduce Greece’s debt to 124 percent of GDP by 2020, after initially setting a target of 120 percent advocated by the IMF, according to those sources who did not specify how this reduction would be achieved. This represents a relief of Greek debt by about 40 billion euros by 2020, according to one of those sources.
– I approve of the decision made by the finance ministers – said European Central Bank President Mario Draghi, leaving the meeting in Brussels, noting that ‘the decision will certainly reduce uncertainty and strengthen confidence in Europe and in Greece.’ The meeting, the third with Draghi and IMF Managing Director Christine Lagarde in two weeks, began at noon.
The finance ministers also spoke by phone on Saturday trying to resolve disagreements regarding the methods of reducing Greek debt, which, without new measures, would rise to 144 percent of GDP by 2020, according to a working document that the ministers were working on.
