Report: Germany's Merkel rejects talk of new debt writedown for Greece

Published July 02, 2013

| Associated Press

German Chancellor Angela Merkel is rejecting talk of a new debt writedown for struggling Greece and insisting that the country is making good progress.

Greece last April received a first round of debt relief that wiped 100 billion euros ($130 billion) off the sum the government owed to private sector investors, who took heavy losses on bondholdings.

The possibility of granting Greece a second round of debt relief has frequently been floated. But asked in an interview with Germany's Sueddeutsche Zeitung and five other European newspapers whether there will be a second writedown, Merkel replied: "I don't see it."

She said in the comments published Tuesday that Greece has moved forward "thanks to the very reform-oriented Samaras government." Merkel added: "I assume that debt sustainability will continue to be assured."