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"It is important that Greece continues to reform its economy.If it cancels the reforms, then some of the additional measures of debt relief will be canceled," said Mr. Relinging at a news conference. conference in Munich
. He also said that Greece would remain under the control of the MES until repaying all its loans to the organization, which should happen in 2060.
The head of the ESM said that the disbursement of the last tranche of 15 billion euros from the Facility would become possible once national procedures are completed, that is to say
Why was it late
At the same time he said that Greece is the only country still in rescue and said that there were three reasons why Greece was delayed compared to other countries
. The problems encountered in Greece during the crisis were much deeper than in other countries in a program. Secondly, the country's administration is weaker than in other eurozone countries
. Thirdly, unfortunately, the country reversed the course of very important reforms in the first half of 2015. There are had an attempt to stop the reform program. As a result, Greece has returned to a recession. The Greek central bank estimates that it cost 86 billion euros in Greece, "said Mr. Relinging
but noted that Greece has made impressive progress since then." Salaries have been reduced from 20 to 30%. This was necessary because they had grown much faster than productivity in previous years. The result has been that the country has lost its competitiveness. As of 2016, the Greek budget shows a slight surplus, whereas in 2008 it had a deficit of 15% of GDP. So Greece has something in common with Germany, which also has a small surplus, "he said.
As stated in a statement by the ESM, Mr Regling expressed confidence that Greece will be able to repay the money borrowed.Economies that have been weakened by a crisis can repay full life-saving loans if their service costs are lengthened and do not exceed 15-20%, has he says.
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