Eurozone is ready to give away money to Greece

According to an exclusive report in the Sueddeutsche Zeitung, the Eurozone is considering for the first time the possibility to donate money instead of lending it to Greece. The money will come from a drastic reduction in interest rates on loans already granted which means, as the newspaper emphasizes, that taxpayers will have to bear the losses.

 

Moreover, there could be the granting of loans from the European Financial Stability Facility (EFSF) or without interest or with interest rates near 0%, the difference being covered also in this case by other Eurozone members. It is also noted that the European Central Bank has already given indications of its plans to offer Greece the profits it might have by selling Greek bonds at a price higher than their purchase.

 

According to SZ, officials are also discussing the possibility of direct payments to Greece to prevent a possible IMF withdrawal from theTroika.

 

According to a report in the German financial newspaper Der Handelsblatt, the Eurogroup intends to give a short-term solution to the funding gap in Greece, with 13.5 billion euros in 2014, leaving for later the gap for 2014-2016.

 

Meanwhile, European commissioner Olli Rehn clarified that resolving Greece's problems will include a combination of measures but should not involve any change in the total amount owed by the country. "The decision will be a combination of different elements. But it is important not to touch the capital. There is unanimity in the Eurozone on this," he said.