http://noir.bloomberg.com/apps/news?pid=20601087&sid=aSFdMNey2cCk&pos=3
“There’s no solution possible” for Greece other than to follow its austerity program, Noyer told reporters in Paris today. “Restructuring is not a solution, it’s a horror story,”and if the country fails to meet the terms of its bailout, Greek government debt will be “ineligible as collateral” at the ECB.
Noyer said any restructuring of Greece’s debt would cost European taxpayers more as Greek banks would become insolvent, requiring government support that would eventually have to come from other countries. Among other losers in a restructuring would be Greek pension funds, the ECB and
European governments who have already lent to Greece, he said.
“No one will be able to finance the Greek state for coming years,” Noyer said. “This is the horror scenario. That’s why we’re against a restructuring.”
For Greece ‘to reduce the stock of debt, the only solution is ambitious privatization,” Noyer said. “It is necessary to have the equivalent of an internal devaluation. Cut production costs. There is no other solution.”
“There’s no solution possible” for Greece other than to follow its austerity program, Noyer told reporters in Paris today. “Restructuring is not a solution, it’s a horror story,”and if the country fails to meet the terms of its bailout, Greek government debt will be “ineligible as collateral” at the ECB.
Noyer said any restructuring of Greece’s debt would cost European taxpayers more as Greek banks would become insolvent, requiring government support that would eventually have to come from other countries. Among other losers in a restructuring would be Greek pension funds, the ECB and
European governments who have already lent to Greece, he said.
“No one will be able to finance the Greek state for coming years,” Noyer said. “This is the horror scenario. That’s why we’re against a restructuring.”
For Greece ‘to reduce the stock of debt, the only solution is ambitious privatization,” Noyer said. “It is necessary to have the equivalent of an internal devaluation. Cut production costs. There is no other solution.”
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