Lowering primary surplus target hinges on higher growth rate after 2020
European Stability Mechanism (ESM) chief Klaus Regling indicated on Friday that Greece's lenders may consider reducing the country's high primary surplus targets if it can overshoot growth goals after 2020.
Speaking at a press conference during a meeting of eurozone finance ministers in Helsinki, Regling said that Greece has made a commitment to the current target of 3.5 percent of gross domestic product for 2019 and 2020 and could seek a reduction after that if lending rates drop and growth surpasses the targets outlined in the country's post-bailout program.
In any case, that is a discussion that could only take place at the end of next year when creditors have a clearer understanding of the prospects for Greece's economy, he said.
It was the first time that eurozone lenders have publicly suggested a lower primary surplus target may be possible. However, Regling...