Published December 12, 2012
BERLIN – The German government is in favor of paying out the next tranche of international aid to Greece after a successful debt buyback program by Athens, Germany's finance ministry said in a letter seen by Reuters on Wednesday.
The letter to the Bundestag lower house said the amendments to Greece's aid package and the successful Greek buyback meant debt sustainability levels were such that Germany would support the payment of its next credit tranche.
Addressed to the head of the Bundestag's budget committee, the letter from Germany's Deputy Finance Minister Steffen Kampeter said the buyback would lead to a reduction in Greek sovereign debt levels of about 9.5 percent of gross domestic output in 2020.
"This means that overall the buyback can be called a success," said the letter, adding that "the other conditions for the payment of further financial help for Greece have been met".
"Against the backdrop of successful amendments to the program, the status of the program's implementation, the success of the debt buyback and the debt sustainability analysis based on these, the German government favors paying out the next credit tranche to Greece," read the letter.
(Reporting by Matthias Sobolewski; Writing by Stephen Brown; editing by Janet McBride)