Schaeuble: private participation has to be voluntary

Reuters
June 20, 2011

German Finance Minister Wolfgang Schaeuble said on Monday that private creditor participation in another bailout for Greece has to be voluntary to avoid triggering a credit event.

"The participation of the private sector... has to voluntary, because if it is not voluntary then it will be according to all rules also of credit insurance a credit event and that will lead to a downgrade of Greece immediately," Schaeuble told German radio station Deutschlandfunk.

Schaeuble emphasized what euro zone finance ministers agreed on Sunday when they postponed a final decision on extending 12 billion euros ($17.07 billion) in emergency loans to Greece, saying Athens would first have to introduce harsh austerity measures.

"If the Greeks do not want to or cannot make the necessary decision, then this route cannot be pursued," Schaeuble said with reference to further payouts.

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