FRANKFURT, July 9 (Reuters) - Any leeway to reprofile Greece’s debt is small, Germany’s finance minister said on Thursday, adding, however, that the IMF was correct in saying that the country’s debt was not sustainable without a haircut.
“Debt sustainability is not feasible without a haircut and I think the IMF is correct in saying that,” Wolfgang Schaeuble told a conference in Frankfurt, before adding: “There cannot be a haircut because it would infringe the system of the European Union.”
Schaeuble said that a reprofiling of debt was another possibility ‘if you cannot do a haircut’ but that leeway to do so was limited.
“I think the leeway we have ... is very low,” he said, adding that he was ‘sceptical’ much could be done. (Reporting by John O’Donnell and Balazs Koranyi)