(31.07.) The continued commitment of euro area member states to support Greece,
including by providing additional official financing to fill future financing gaps and through further
debt relief as necessary, is an essential part of meeting the criteria. (..)

The commitment of
Greece’s European partners to provide debt relief as needed to keep debt on the programmed path
remains, therefore, a critical part of the program. But the programmed path entails still very high
debt well into the next decade, leaving Greece accident prone for an extended period. Should debt
sustainability concerns prove to be weighing on investor sentiments even with the framework for
debt relief now in place, European partners should consider providing relief that would entail a
faster reduction in debt than currently programmed. (..)

Financing. The financing relief measures committed by the Eurogroup in December have broadly taken hold: the interest margin on GLF loans was cut from 100 bps to 50 bps, the administrative fee on EFSF loans was eliminated, the interest on EFSF loans has been deferred, and income on SMP profits is expected to be transferred in July. However, the Eurogroup agreed to provide further financing of almost €4 billion through 2014 and €5.6 billion through 2016. (..)