Merkel Allies Signal Greece Concessions

Concessions are possible for Greece so long as Prime Minister Antonis Samaras shows a willingness to meet the main targets set out in his country’s bailout program, a senior lawmaker with Chancellor Angela Merkel’s party said.

A precedent for program adjustments was made with the first Greek bailout, when the country secured lower interest rates and longer maturities on bilateral loans than those originally set, Norbert Barthle, the Christian Democratic Union’s budget spokesman in parliament, said today in a telephone interview.

“Small concessions are feasible provided they are strictly made within the framework of the second aid program,” Barthle said. “For instance, the interest and maturity on loans could be adjusted, as in the case of the first aid package for Greece.”

Barthle’s comments add to signs of an easing in Germany’s resistance to granting Greece more room as it struggles to meet the terms laid down by its international creditors in a fifth year of recession. Samaras, whose ruling coalition favors an extension of its fiscal adjustment program by two years, is due to meet with Merkel in Berlin on Aug. 24, and will travel to Paris the next day for talks with President Francois Hollande.

Bloomberg

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell