New teleconference on the debt, "strong" countries want a lower interest rate

The- until recently - alleged “agreement” on the Greek debt seems not to be finalized yet, as the countries with the highest credit rating in Europe require a lower weighted interest rate for new bonds in order to ensure the sustainability of the Greek debt.

With a meeting between PM Lucas Papademos and IIF Chairman Charles Dallara taking place at 19.30, attended by FM Evangelos Venizelos, information abounds which sees Germany, Holland, Luxembourg and Finland requesting to establish the weighted average interest rate on new bonds at 3.5% instead of 4.2%.

A new teleconference on this subject is taking place between parties, preceded by a meeting between the PM and the Troika auditors, who told him that the completion of the PSI is a prerequisite for the launch of the evaluation of the Greek economy.

Earlier, protothema.gr had broadcast that the PSI was first agreed upon with Greece and the Troika achieving very low rates compared with the initial requirements of bondholders. Specifically, the interest rate on new bonds is escalating, while it also includes a clause of increase when the country shows growth. The initial rate is 3.10% and will increase gradually to 3.90%, eventually reaching 4.75%. The entire Greek debt is replaced by a 30-year bond term. Greece will pay only interest during the first year, and from then onwards there will be payments of both interest and principal in order to carry out full payment of the debt in the end.

Note that the rise in the ASE continued today, with gains of 2.67%, completing eight consecutive upwards sessions, the best week since June 2007.