German financial daily Handelsblatt on Wednesday pointed to a French proposal to link Greek debt relief with the rate of economic growth in the still recession-battered country.
The Frankfurt-based paper quoted unnamed sources as saying that European institutions are continuing to try and persuade the IMF to improve its forecasts of anemic Greek economic growth extending into the next four decades.
European creditors want improved forecasts for the Greek economy in order to reduce the prospect of more liberal debt relief.
Nevertheless, Handelblatt writes that the IMF appears unwilling to step back from its position. “(Alexis) Tsipras’ only hope is for another proposal, one formulated by new French President Emmanuel Macron and economy minister Bruno Le Maire … relief of the Greek debt linked with economic growth.”
The paper said the proposal’s crux is that if the Greek economy grows, then the debt will be serviced as planned. If the opposite, however, occurs, then debt maturities will be extended.
“The German government, however, views this proposal with skepticism,” the article concludes.
