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Greek debt is unsustainable and the country needs a “soft-restructuring” of its debt, according to Euro Group and European Council President Jean-Claude Juncker (via Bloomberg and Reuters).Juncker, speaking after the meeting of European finance ministers, has outlined the group’s conclusions. Specifically, we’re talking about a lengthening of maturities on Greek debt that will likely be voluntary. Earlier, Juncker referred to this as “reprofiling,” but it seems now he is willing to admit it is actually restructuring.
Juncker also said the Greece needs to speed up its process of privatization.
It is likely EU leaders will still have to give Greece more money, as without additional aid, Greece likely won’t be able to receive its next tranche of IMF support.
The euro fell on Juncker’s comments, but has since rebounded: