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Merkel not currently considering Greek debt 'haircut'

Published on Dec 4, 2012 6:02 AM
German Chancellor Angela Merkel walks past a flag of Europe as she visits the venue of the upcoming congress of her ruling conservative Christian Democratic Union (CDU) party on Dec 3, 2012 in Hanover, central Germany. -- PHOTO: AFP

BERLIN (AFP) - German Chancellor Angela Merkel on Monday said she did not currently want to consider a so-called "haircut", or write-down, on Greek debt, an idea she had hinted at a day earlier.

"It is important that we don't consider now the prospect of a partial cancellation of (Greek) debt, because all of our efforts would immediately come undone," she told German television in an interview in Hanover, where her conservative Christian Democratic Union party is meeting this week.

In an interview on Sunday, Dr Merkel had said for the first time that a haircut could be considered from 2014 if Greece's financial situation improves.

"If Greece one day again manages with its revenue without getting new debt, then we must look at and assess the situation. That is not the case before 2014/15 if everything goes according to plan," she told the Bild am Sonntag newspaper.

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