Debt relief is a strong pre-requisite for the International Monetary Fund (IMF) in order to continue its participation to the Greek bailout program.
Back in August 2015, the ESM said that euro-zone member states would consider measures to make Greek debt sustainable, if necessary. However, to do so, Greece would have to pass the first evaluation of the current bailout program with a positive outcome. Any nominal haircut on official debt was ruled out.
“In the light of this commitment the ESM has started to look into possible options on a purely technical level” the ESM said in a statement on Wednesday.
“These options have not been discussed at a political level. Any potential decision on further measures to alleviate Greece's debt burden can only be taken by a unanimous vote among all euro area Member States”.
Further details on possible options were not published.
Debt relief is a key political demand for the ruling party of Greece, Syriza which same to power calling for a haircut on the principal of its huge debts, most of which are with the official sector, such as the ESM and the IMF.