print Share page with AddThis

What measures were agreed by the Eurogroup to ease Greece’s debt burden in November 2012?

The Eurogroup agreed a set of measures designed to ease Greece’s debt burden and bring its public debt back to a sustainable path. These measures included:

  • reducing the interest rate charged to Greece on the bilateral loans in the context of the Greek Loan Facility (GLF) by 100 basis points;
  • cancelling the EFSF guarantee commitment fee of 10 basis points (it is estimated that this will save a total of €2.7 billion over the entire period of EFSF loans to Greece);
  • extending the maturity of GLF loans by 15 years to 30 years (to 2041); extending the EFSF weighted average maturities by 15 years to 32.5 years, thus significantly improving the country’s debt profile;
  • deferring interest rate payments on EFSF loans by 10 years until the end of 2022 (it is estimated that this will lower the country’s financing needs by €12.9 billion);
  • passing on to Greece an amount equivalent to the income of the ECB’s Securities Markets Programme (SMP) portfolio accruing to their national central bank.

Section for US QIB Investors Subscribe to ESM News