MarketWatch
May 13, 2011
Restructuring Greece's debt is too risky and may have a negative impact on the euro-zone region as a whole without resolving any of the underlying issues, a senior European Central Bank official said Friday. "The notion that one could solve a budget crisis by simple debt reduction is an illusion," Juergen Stark, a member of the ECB Executive Board, said in a speech at an award ceremony in Aachen, Germany. Stark noted that debt restructuring will trigger more uncertainties and lead to slower economic growth, forcing the government to borrow more heavily, according to a translated transcript of the speech. Stark also dismissed concerns that Greece was insolvent and stressed the importance of consistent implementation of structural reform.
More
No comments:
Post a Comment