Report: Merkel sees no new Greek debt writedown

AP News
Posted: Jul 02, 2013 12:52 PM

BERLIN (AP) — German Chancellor Angela Merkel is rejecting talk of a new debt writedown for struggling Greece and insisting that the country is making good progress.

Greece last April received a first round of debt relief that wiped 100 billion euros ($130 billion) off the sum the government owed to private sector investors, who took heavy losses on bondholdings.

The possibility of granting Greece a second round of debt relief has frequently been floated. But asked in an interview with Germany's Sueddeutsche Zeitung and five other European newspapers whether there will be a second writedown, Merkel replied: "I don't see it."

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She said in the comments published Tuesday that Greece has moved forward "thanks to the very reform-oriented Samaras government." Merkel added: "I assume that debt sustainability will continue to be assured."