Greece Must Find New Creditors Fast
The Finance Minister of the European leading economy, Germany, Wolfgang Schaeuble told the press today that he believes Greece won’t find and creditors outside the European Union and the International Monetary Fund.
Athens is more than welcome to try and find new sources of money, like China or Russia, but Schaeuble believes it to be a very difficult task. The borrowing costs have rose be 3.5% points, and are now at the 27% level, which lead to concern about the possible debt default by Greece.
YanisVaroufakis, the Finance Minister of Greece repeated that Athens is not even considering leaving the European Union. The Finance Minister asked for a “compromise, compromise, compromise without being compromised” policy in the negotiations with the lenders. Both statements were given in Washington, where talks are being held.
The S&Pratings agencydowngraded the credit rating of Greece on Wednesday, with the yields rising on Greek long term borrowing. The bond yield for a 10 years period, the demanded amount by the investors rose to 13%.
The German Minister underlined the importance of Greece finding new creditors.
“The Europeans have said, OK, we are ready to do it [lend money] until 2020… If you find someone else, whether it’s in Beijing, in Moscow, in Washington DC, or in New York who will lend you money, ok, fine, we would be happy. But it’s difficult to find someone who is lending you in this situation amounts [of] €200bn.”
Schaeuble said that Greece will have to focus on lifting the primary surplus, and becoming more competitive.