Turkey crisis ‘won’t affect’ exit, Tsakalotos claims

Finance Minister Euclid Tsakalotos on Tuesday sought to quell concerns over a possible spillover effect from Turkey’s deepening economic crisis, saying problems in the neighboring country will not affect Greece’s “clean exit” from its third bailout program on August 21.

Greek bond yields rose above 4 percent in recent days, as markets are worried that Turkey’s financial problems could have wider implications for Europe.

In a statement to Greek news website Newpost, Tsakalotos said the government is closely monitoring developments in Turkey. “However, the problems of the Turkish economy will not affect the Greek economy’s clean exit from the memoranda,” he reportedly said in a statement. 

The finance minister said the imminent completion of the country’s adjustment program is based on the agreement on Greek debt relief achieved at the last Eurogroup in late June, and the cash buffer the government has created, which ensures the state’s financing needs for the next two to three years. 

“Therefore, the Greek government’s planning is not affected by short-term turmoil in the financial markets. On August 21, Greece turns the page, and this is final,” he said.