EFSF won't demand immediate repayment of Greek loans but leaves options open

Gazzetta team 3 Ιουλίου 2015 - 18:01

The European Financial Stability Facility (EFSF) on Friday announced that it will not demand immediate repayment of Greece's loans, while reserving the right to do so in the future. The decision was made in the wake of Greece's failure on Tuesday to make a 1.6 billion euro repayments to the International Monetary Fund (IMF).

“The EFSF is Greece’s biggest creditor. This event of default is cause for deep concern. It breaks the commitment made by Greece to honour its financial obligations to all its creditors, and it opens the door to severe consequences for the Greek economy and the Greek people. The EFSF will closely coordinate with the euro area Member States, the European Commission, and the IMF on its future actions,” EFSF Chief Executive Klaus Regling said.

The decision to opt for a Reservation of Rights means that the lender has kept all options open.

The EFSF loans, amounting to nearly 150 billion euros, consist of 109.1 billion euros under the Master Financial Assistance Facility Agreement, 5.5 billion euros under the Bond Interest Facility Agreement and 30 billion euros under Private Sector Involvement Facility Agreement.