Germany is holding steadfast in its opposition to debt relief for Greece.
Threadbare Greece has been pushing to get its EU creditors to write off at least some of its debts, arguing that it can not sustain its heavy loan repayments.
Jeroen Dijsselbloem, leader of the Eurogroup – an informal group of eurozone ministers – has said he wants the question to be on the agenda of a euro area finance ministers meeting at the end of May.
But a document from Germany’s finance ministry has been reported to say that any relief should happen only in 2018 after Greece has complied fully with the terms of its bailout.
"Last June, Eurogroup had said it was ready, if necessary, to examine additional measures to maintain a sustainable level for the financial needs of Greece," according to the document seen by AFP.
"These measures would be granted on condition that the (rescue) programme has been fully implemented in 2018," it added.
The German parliament must approve any bailout plan or substantial modifications to existing ones, including debt relief. Shunting the problem to 2018 means that such a vote would not have to take place before next year’s general election.
German voters appear uneasy about helping to fund the €86-billion bailout for Greece. Germany itself had to undergo tight austerity measures to get back steady economic ground and many feel that Greece should do the same.
But the IMF believes the Greek debt load is unsustainable and has called for debt relief. It is reported to believe that Greece should be allowed to miss interest payments on loans until 2040.
