THE REUTERS news agency reported from Davos last night that European Union officials are considering extending euro zone bailout loans to Greece and Ireland to 30 years in a bid to draw a line under the debt crisis.
The news agency attributed the information to two unnamed Euro-zone sources.
Reuters reported: “The sources said European Central Bank Governing Council member Axel Weber, head of Germany’s influential Bundesbank, had suggested stretching out the maturities from three years for Greece and seven for Ireland as part of a comprehensive package to overcome the crisis.”
The idea surfaced in intensive talks among euro zone ministers, central bankers and officials on the sidelines of the World Economic Forum, the sources said.
“There are all sorts of ideas. I don’t know how much weight this one carries. But of course it’s not unheard of. Britain and some other countries only paid off some first World War bonds just recently,” said a senior euro zone source.
Euro zone leaders agreed in principle last month to extend the maturity of the Greek loans to the same duration as the Irish package.