LONDON (Reuters) - Support can only be given to Greece if it complies with agreements made, European Central Bank policymaker Jens Weidmann said on Thursday, dismissing the idea of debt relief for Athens as “counter-productive”.
Weidmann’s comments further add to the pressure on Greece, which is running out of time to agree a new bailout deal with its European partners.
“Greece will continue to need support, but support can only be given if the agreements made are complied with,” he said in the text of a speech for delivery in London.
Weidmann, who is also president of Germany’s powerful Bundesbank, added that although Greece’s debt ratio is high, the average maturity on its debt is quite long and the average interest rate quite low.
“Hence, further debt relief would not really change Greece’s liquidity situation by much. But any further relaxation of the agreed targets would be counter-productive to efforts to regain investors’ confidence in Greece’s debt sustainability,” he said.
Writing by Paul Carrel; editing by John O'Donnell