The BBC says Greece Hails 'Historic' Debt Relief Deal
The Financial Times says EU Commissioner Calls End to Greek Crisis
This was another can-kicking announcement according to Eurointelligence.
Here it is. Finally, a deal on debt relief for Greece. It is a fudge of sorts, but a deal that ends the eight-year-long Greek debt crisis - for now. These are the main components of the deal:
A €15bn loan disbursement at the end of the programme, of which €3.3bn can be used to buy back IMF loans;
A 10-year extension of the EFSF loans, and a ten-year deferral of interest payments and amortization starting from 2033; and
A return of profits from Greek bonds (SMP and ANFA) held by Eurozone central banks, a total of €4bn, with semi-annual payments and subject to reform targets.
There is no growth clause, no interest-rate cuts, no major buyback programme. This is not debt relief in the way the IMF defines it, but debt relief of the kicking-the-can-the-road variety.
It also leaves Greece with a significant exposure to IMF loans. Even if Greece were to use the €3.3bn to buy back IMF loans, that still leaves €7.1bn to be repaid by 2024.