Greece most complex debt crisis for years

Reuters
June 28, 2011

Greece is embroiled in the most complex sovereign debt problem for years as there are so many parties involved and no unified European view, the head of the Institute of International Finance (IIF) said on Tuesday.

"This is the most complex sovereign debt crisis I have ever been connected with, because there are so many players, no unified European view, and the weaknesses of the Greek economy are extraordinarily serious," said Charles Dallara, who has been managing director of the IIF bank lobby group for 18 years and was involved in other sovereign crises.

"The private financial community has to play a part," Dallara said, but added: "It will be exceptionally difficult to align the political, economic and financial stars."

Dallara said radical proposals by France to roll over some Greek debt for 30 years had stimulated debate and some of the proposals were likely to be in the final solution.

But he said more European cohesion is needed. "At some points European leaders will have to see themselves as European leaders and not as French, or German or Greek."

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