Greece's creditors close to writing off some of its debt
Source: The Guardian
Greece's international creditors are edging closer to accepting that they will have to lighten the country's monumental debt burden if its shattered economy is ever to be fully rehabilitated.
In an implicit recognition that the eurozone's weakest member state will never recover unless some of its debt is forgiven, the International Monetary Fund's managing director, Christine Lagarde, said that Athens' debt pile, projected to reach a staggering 185% of GDP this year, would remain high "well into the next decade".
"The assurances from Greece's European partners that they will consider further measures and assistance, if necessary, to reduce debt to substantially below 110% of GDP by 2022 … are welcome," she said at the weekend in a statement approving the disbursement of extra €1.7bn (£1.5bn) to the country.
Largarde's remarks came in the wake of the strongest evidence yet that eurozone nations providing the bulk of Greece's €240bn rescue funds – the biggest bailout in western history -- were also coming round to the once off-limits option.
Read more: http://www.guardian.co.uk/world/2013/jun/02/greece-debt-crisis
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