EU Sees Debt Reprofiling for Greece

The European Commission published on Wednesday its assessment of Greece’s bailout request, taking a different view of Athens’ debt sustainability than the IMF, but also signalling a possibility of debt relief.

A day after the IMF published its latest assessment, saying Greece would require extensive debt relief from its mostly euro zone sovereign creditors, the EU executive’s note said the Greek debt-to-GDP ratio would be 150 percent in 2022 if Athens implemented reforms, but could reach 176 percent if it did not.

The IMF, which contributed to the Commission assessment made last week, expects a debt-to-GDP ratio in 2022 of 170 percent and called for much greater debt relief than has been proposed.