FX.co ★ ESM ready to resume talks on debt relief with Greece

The European Stability Mechanism (ESM), Greece's largest creditor, can resume the process of implementing short-term measures to reduce the country’s public debt. The appropriate measures could be launched in case Greece confirms its obligations under previous agreements, Eurogroup head Jeroen Dijsselbloem said.

“Happy to conclude that we have cleared the way for ESM to go ahead with decision-making procedures for short term debt measures for Greece,” Dijsselbloem said in a tweet. “I have received a letter in which my Greek colleague has confirmed his commitment to previous agreements,” he added.

Eurozone finance ministers agreed in December on a set of measures to reduce the cost of Greek debt. To start implementing the measures, the decision of the ESM was needed. However, the debt relief process was suspended as Greece’s government decided to hike pensions by 200-600 euros.

The ESM, the IMF, and the ECB had to assess the impact of these proposals on Greece’s fulfillment of the ESM’s loan requirements. The Board of Governors of the ESM will use this information in its decision on the future measures concerning Greece’s debt.