Greece should be granted a lower interest rate on its 130-billion-euro ($169.690 billion) rescue package. Not only that, it should be given at least two more years to pay it back, said Charles Dallara, managing director of the Institute of International Finance (IIF)—the group that serves as the chief negotiator for the country’s private-sector creditors.
Reuters reported Tuesday that Dallara advised such leniency be granted only after Greece has managed to deliver on the requirements already in place for it to get its bailout. And that’s the catch; Greece is having a tough time pushing through the measures demanded by the troika of the European Union, European Central Bank (ECB) and International Monetary Fund (IMF) in exchange for the bailout money.
“Once that has been done, and I am confident it will be done, Europe and the IMF should move quickly to extend the adjustment period for at least two years and provide the modest additional financial support for that extension to be effective,” Dallara said in the report.