World Business

EU commissioner sees no risk of default by Greece

(Agencies)
Updated: 2010-04-16 11:03

BRUSSELS - A European Union commissioner said Thursday that Greece will not default on its debt.

"Default is not an issue," EU Economic and Monetary Affairs Commissioner Olli Rehntold said at a conference here. "There will no default".

Rehntold also said that Germany, as the largest economy in the 16-member eurozone, will do its part to help Greece if needed.

Finance ministers of the eurozone on Sunday hammered out a more detailed aid package for Greece, pledging 30 billion euros ($41 billion) in the form of bilateral loans in the first year to bail out debt-hit Greece if necessary.

The total amount would be shared by eurozone countries in accordance with their capital base in the European Central Bank and the bilateral loans would be coordinated by the European Commission and paid via the ECB.

Analysts have warned that the 30-billion-euro package may reduce near-term risks of a debt default by the Greek government, but serious concerns over longer-term problems would weight heavily on the markets.

Athens needs to raise 11.6 billion euros by the end of May to cover maturing debt, part of about 54 billion euros needed for the whole year. In the long run, Greece faces a public debt of around 300 billion euros.