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Merkel did not directly address that charge, noting only that Greece's current bailout programs runs through 2014, hinting that she sees no need for yet new measures before then. The hawkish head of Germany's central bank, Jens Weidmann, last month said that Greece will eventually need a haircut, but it should only be granted after a prolonged period of budgets cuts and labor reforms there. Earlier this year, Greece reached a deal with its private creditors to wipe some
euro100 billion ($130 billion) off its national debt, or about half of the country's GDP. Still, a second haircut on Greece's debt from the eurozone rescue loans might be necessary. Analysts say such a haircut could cost Germany, the main contributor to the bailouts, up to
euro17 billion ($22 billion) -- more than 5 percent of Berlin's annual budget. Merkel's comments came only two days after Germany's parliament voted in favor of granting Greece more lenient terms on its bailout program, clearing a necessary hurdle for disbursing a
euro44 billion ($57 billion) rescue loan payment in December that Athens needs to avoid bankruptcy.
[Associated
Press;
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