However, I firmly believe that it is also in Greece’s own interest to do what is necessary to tackle the structural and fiscal problems it is facing. Greece will continue to need support, but support can only be given if the agreements made are complied with.
Incidentally, Greece’s debt ratio is very high, but the average maturity is quite long and the average interest rate quite low – as is the current annual level of debt servicing. Hence, further debt relief would not really change Greece’s liquidity situation by much.