Stournaras spells out ‘no more taxes’

 Trial bond issue will likely come after the European elections, while needs are covered up to May 2015

By Sotiris Nikas

Finance Minister Yannis Stournaras categorically denied on Wednesday that there is any prospect of new taxes being imposed, adding that Greece is ready to issue a new bond but will likely do so after May’s European Parliament elections. He also stated that negotiations over the new lightening of the country’s debt will start at the Eurogroup meeting after next.

In an interview on Skai Radio, Stournaras made it clear that “there is no way we will impose any new taxes.” However, he did add that the abolition of certain taxes will be delayed, and, in reference to the solidarity tax, he said that it will be maintained “for as long as it takes for us to meet the fiscal targets.” He noted the bailout agreement provides for Greece to gradually relax its tax rates on the condition that it meets its targets.

The minister said the next bailout tranche will add up to some 9 billion euros and will be delivered in a lump sum, while after May, “the program ends as far as Europe is concerned and another 9 billion euros will come from the International Monetary Fund up until February 2016.” Greece’s funding needs are fully covered until May 2015, and under certain conditions up to March 2016, he explained. “After that, we will be able to enter the markets fully, for all our requirements,” said Stournaras.

Before then, Greece will have tapped the markets in a “trial issue.” The minister said that “we are almost ready, and we will return to the markets when we deem that conditions are appropriate.” Questioned as to whether that would come before the European elections, he responded, “Probably not.” The...