ATHENS, Greece (AP) – U.S. Treasury Secretary Jacob Lew stressed Thursday the importance of making Greece’s debt sustainable, praising the country’s progress in reforming its economy as part of its international bailouts but urging it to continue implementing the necessary measures.
Speaking in Athens after talks with Greek Finance Minister Euclid Tsakalotos, Lew said further progress on reforms was important so European creditors could begin discussions with the International Monetary Fund on “the timing and details of debt relief.”
“Putting Greece’s debt on a sustainable path is critical to Greece’s long-term economic health and I encourage all parties to be flexible to successfully conclude this fall’s negotiations,” Lew said.
Greece has been dependent on rescue loans from other eurozone countries and the IMF in three bailouts since 2010, after massive debt and a loss of investor confidence in the country’s ability to repay it left it locked out of bond markets.
To qualify for its bailout loans, successive governments have had to implement austerity measures and reforms, including in the labor market, pensions and social security, as well as raising taxes and selling off state assets. The reforms have come at a high cost, with Greece’s economy contracting by a quarter and leaving unemployment hovering at around 25 percent.