EU may give Greece more time to pay debt

Europe showed a willingness yesterday to give Athens more time to pay its debts, but little sign that it would yield to the new Greek government’s demands for debt forgiveness.

European Union leaders and policymakers responded to Greek anti-bailout party Syriza’s election victory on Sunday with warnings that a debt reduction for Greece would be against eurozone rules and would send the wrong message to other members of the single currency.

Before any talks on more time for Greece to repay its debts can start, Athens must get an extension of its existing bailout to give itself time for negotiations on future economic policy and on longer loan maturity with international lenders.