Eurogroup President Paschal Donohoe said he is convinced that Greece’s debt can achieve the ratings deserved by the performance of the Greek economy, in an interview to Capital.gr news outlet on Wednesday.
Donohoe observed that Monday’s Eurogroup decision on Greece is proof of the work achieved thus far and of the EU’s trust in the country’s economic future. “Therefore, the work must continue, as it is indeed happening,” he noted.
Asked about Greece’s fiscal outlook – given that it holds one of the highest rate of debts in the EU – the Eurogroup head noted that he was absolutely confident in the Greek economy’s ability to manage its current debt level.
The reasoning behind this certainty, he added, “is the credibility of its fiscal plans of recent years, the commitment of the Greek government to reduce its borrowing needs, which eventually decreased while growth strengthened. I am confident that this level of debt can be manageable,” he stressed.
On Monday the finance ministers of the eurozone unanimously decided the disbursement of 725 million euros from from the profits of the European banks holding Greek bonds. They also abolished the increase foreseen in the interest rate of loans by the European Stability Mechanism following the implementation of promised reforms.