The head of Europe's rescue fund said that Greece might not need a precautionary credit line when the country exits its third bailout in August, Reuters reported March 10.
Klaus Regling, managing director of the European Stability Mechanism, said that a precautionary arrangement is not needed "if everything remains quiet, reforms continue and Greece continues to develop its market access," according to the report.
The European Stability Mechanism, or ESM, and the European Financial Stability Facility together hold more than half of Greece's €332 billion public debt, making them the country's largest creditors. Greece has maintained its link to markets through three international bailouts.
Regling noted that the ESM could buy out the International Monetary Fund's loans, which are more expensive, as part of a possible decision on medium-term relief, Reuters wrote. The IMF participated in Greece's first and second bailout programs.
