Greece's exit from bailouts not to be affected by Turkey's economic woes: minister

Source: Xinhua| 2018-08-15 00:05:13|Editor: yan
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ATHENS, Aug. 14 (Xinhua) -- Greece's clean exit from the bailout programs on Aug. 20 after an eight-year debt crisis will not be affected by the problems of neighboring Turkey, Greek finance minister Euclid Tsakalotos commented on Tuesday.

"The Greek government, as well as all European governments, closely follows developments in the Turkish economy and we hope that our neighbors will soon overcome their problems," Tsakalotos told Greek news portal "newpost".

"The turmoil in Turkey will not have an impact on Greek economy's clean exit from the memoranda," the official stressed.

The Turkish lira has lost some 45 percent of its value against the U.S. dollar this year due to diplomatic rifts with the United States and the growing vulnerability of the Turkish economy.

Greek media have expressed concern over whether turbulence in the neighboring economy may have repercussions in Greece.

According to the Greek-Turkish Chamber of Commerce, Greeks have invested 6.4 billion euros (7.3 billion U.S. dollars) in Turkey and more than 750 Greek companies export significantly to the neighboring economy, news portal "in-gr" noted.

The Turkish currency's decline may also make Turkey more attractive to tourists as a cheaper destination compared to Greece, the report added.

Moreover, commentators expressed concern that the Turkish lira crisis may affect the borrowing costs of Southern European countries.

As Greece is set to exit the bailout, the yield of the 10-year Greek state bonds remains high and instability in the markets due to a crisis in Turkey or Italy may illustrate that Greece remains vulnerable to external shocks, according to media reports.

Tsakalotos dismissed the fears, however, arguing that Greece's exit is solidly based on the June Eurogroup agreement regarding the post-bailout management of the Greek debt burden, as well as on a cash buffer which guarantees that the public sector's funding needs will be met in the next two or three years.

"Therefore, the Greek government's plans are not affected by short-term turmoil in the markets. On Aug. 21, Greece is opening a new page, and this is definitive," the minister stressed. (1 euro = 1.14 U.S. dollars)

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