Regling sees lengthening maturities and interest deferrals for Greece

The head of Europe’s permanent rescue fund ESM, Klaus Regling, on Tuesday ruled out a haircut for Greek debt, Reuters reported. “There will be no haircuts. One can think about lengthening maturities and interest deferrals,” Regling was quoted by the news agency.

“Regarding the burden put on the creditors, it does not make any difference if they grant Greece longer maturities and lower interest rates or a nominal haircut,” cep economist Matthias Kullas remarked. “Empirical research even has shown that – at the same level of debt relief – a nominal haircut shows a stronger impact.”