DHAKA: The Greek debt crisis has saved the German government some €100bn in lower borrowing costs because investors have sought safety in German bonds, a study has found.

Even if Greece defaults on all its debt, Germany would still benefit, says the German IWH institute, reports the BBC.

Greece is hoping to reach a third bailout agreement, worth up to €86bn, with its creditors this week.

Germany has funded €90bn so far and wants tough conditions for a new deal.

Greece missed two key payments to the International Monetary Fund (IMF) in June and July, before a deal on a bridging loan was thrashed out by EU leaders.

The terms of the third bailout need to be reached by 20 August, when Greece’s next debt repayment to the European Central Bank becomes due.

Greek officials said negotiations were in the ‘final stretch’, prompting shares in Athens to jump more than 2%. But leading figures in Berlin were cautious that a final deal was close.

Chancellor Angela Merkel’s spokesman Steffen Seibert said ‘thoroughness comes before speed’ and Christian Democrat MP Ralph Brinkhaus suggested that interim bridging finance would be better than ‘rushing into a bad agreement’.

BDST: 1338 HRS, AUG 11, 2015
RR