LUXEMBOURG (Reuters) - Efforts to reduce Greece’s debt burden to 120 percent of GDP by 2020 are still a long way off target, the head of the Eurogroup said on Friday.
Speaking ahead of a critical meeting of euro zone finance ministers in Brussels on Monday, when they are expected to finalize the details of a second rescue program for Greece, Jean-Claude Juncker said there was a lot of work to be done to get the debt down to a sustainable level.
“We have a Council decision of October 26 last year expressing the view that the debt-to-GDP ratio in 2020 should be 120 percent,” he told reporters. “We are far away from that objective. All the discussions I will have... until Sunday night will try to move the figure nearer to the target.”
Greece’s debts currently stand at around 160 percent of GDP. The IMF, ECB and European Commission have carried out an analysis into where the debt will stand after a bond swap with the private sector, with sources saying that they expect the ratio to remain at around 129 percent.
The IMF has said that if the ratio cannot be cut to around 120 percent by 2020, it may not be able to finance the second, 130 billion euro program for Greece.
Reporting by Michele Sinner, editing by Luke Baker