Greece: Euro finance chief warns about debt write-off

Greece Euro finance chief warns about debt write-off

Greece’s new government will find little support among eurozone policymakers for a debt write-off, a senior finance chief has said.

Jeroen Dijsselbloem, who heads the eurozone finance ministers’ group, said Greece must “stick to the rules”.

Speaking before a Eurogroup meeting on Monday, he said; “There is very little support for a write off in Europe.”

It followed anti-austerity party Syriza’s election win, which initially sparked big falls on financial markets.

The euro earlier fell to an 11-year low against the dollar, while the Athens stock market fell more than 5%. The markets had recovered by mid-morning, with the main share indexes in London, Paris and Frankfurt also reversing earlier falls on hopes that a compromise over Greece’s bailout terms might be found.

Syriza wants to renegotiate the €240bn bailout and slow austerity cuts.

But the party’s leader Alexis Tsipras helped calm investors’ nerves when he said in a speech that he wanted negotiation, not confrontation, with Greece’s international lenders.

Source: http://www.bbc.com/news/business-30977714

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