In Greece, Upcoming Debt Negotiations Will Likely Yield Compromise

In the coming weeks and months, the Greek government will negotiate debt relief measures with the European Union and the International Monetary Fund. Greece achieved a primary surplus in 2013 and expects timid economic growth in 2014. Because of this, Athens believes that its international lenders should honor earlier promises to help Greece reduce its debt burden. Athens faces a precarious domestic political situation — one that lenders do not want to see bring further instability. Coming out of these negotiations, Athens is likely to secure lower interest rates and an extension on loan maturities, but not a new debt write-off.