Sunday, April 25, 2010

Merkel: Credible Restructuring Precondition To Aid [dow jones] #Greece

Dow Jones Newswires
BERLIN -- A "credible" restructuring program, and measures to keep euro stable are preconditions for paying out any aid to Greece, German Chancellor Angela Merkel said Friday-- adding it is still too early to talk about if, when and how much aid will be given, because talks are yet to be finalized. Speaking to reporters after Greece officially asked for aid, Merkel said that it is important to guarantee the stability of the euro and that, if needed, fast, decisive action will follow.

"It is important that the German government as well as each other euro-zone government stabilizes the euro," Merkel said.
Tough conditions are attached to any aid, she said. "This means that, first, a credible austerity program between Greece, the European Commission and the International Monetary Fund must be negotiated," Merkel said, adding that Prime Minister George Papandreou told her earlier Friday that talks "will take some time." Second, after such a program is made available, the commission, ECB and IMF will need to determine that the stability of the euro-zone in general makes an aid program for Greece necessary.  "Only once these two steps have been taken, we can talk about concrete aid, also about the type and the volume of the aid," Merkel said.
---By Andrea Thomas, Dow Jones Newswires; +49-30-288-8426;

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