Friday December 19, 2014 Search
Weather | Athens
17o C
10o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Greek exit not fatal for eurozone, says ECB's Honohan

A Greek exit from the euro zone would damage confidence in the single currency bloc but not necessarily be fatal, Irish central bank chief and European Central Bank policymaker Patrick Honohan said on Saturday.

The prospect of a Greek euro exit has arisen after European countries said Greece cannot get more of the financial aid on which it is dependent if it does not meet the terms of its bailout. But parties backing the bailout programme have no majority in parliament after inconclusive elections last week.

"It (a euro exit) is not imagined in the legislation, in the treaties, but things can happen that are not imagined in the treaties, Honohan told a conference in the Estonian capital.

"Technically, it can be managed. It (a Greek exit) would be a knock to the confidence for the euro area as a whole. So it would add to the complexity of the operation until things settle down again. It is not necessarily fatal, but it is not attractive, he said.

He said everyone was working to avoid such an exit, including in Greece, and that if anyone thought about such a development they would view it as a very unattractive hypothesis for the rest of the euro area and a rather destabilising kind of event.

European Commission Economic and Monetary Affairs Commissioner Ollie Rehn said leaving the euro zone would be bad for Greece and Greek cities and noted that the size of the bailout had shown European solidarity.

"Greece is getting external aid in terms of loans or debt relief altogether equal to 177 percent of its GDP: 200 billion (euros) from the Europeans and the IMF in terms of loans and about 100 billion (euros) in debt relief from private creditors, he said.

Latvian Prime Minister Valdis Dombrovskis, whose own country successfully completed a bailout programme involving austerity measures equal to more than 10 percent of output, said his country would not have got any aid if there had been a parliament majority against the bailout.

"You need to have an exit strategy. That is the point, that is why the Greeks are frustrated, they don't see an exit strategy and that is why other countries are frustrated they also don't see an exit strategy, Dombrovskis added.

[Reuters]

ekathimerini.com , Sunday May 13, 2012 (01:57)  
Importers told to pay up in advance
Jobless rate posts steady decline
Piraeus and KKR strike loans portfolio deal
German approval and praise come at key time
Govt spokeswoman says bribery claims badly-played charade, heralds legal action if evidence not produced
Responding to claims by Independent Greeks deputy Pavlos Haikalis on Friday that an unidentified individual tried to bribe him to vote in favor of the coalition's candidate in the first roun...
Former premier Mitsotakis to meet President Papoulias to discuss political upheaval
Former prime minister and New Democracy honorary president Constantinos Mitsotakis was to meet with President Karolos Papoulis at 2 p.m. on Friday after the former requested the meeting, cit...
Inside News
SOCCER
PAOK loss at Giannina brings Olympiakos to within a point
The bad losses that PAOK and Panathinaikos suffered on the road on Thursday allowed Olympiakos to gain significant ground on the table and come to within one point from the top after the mid...
BASKETBALL
Reds lose in Turkey to motivated Galatasaray
Olympiakos went down at Galatasaray 79-74 on Thursday for its second defeat in the first round of the Euroleague that ended with the Reds topping their pool with eight wins in 10 games. With...
Inside Sports
COMMENTARY
New weapons of diplomacy
Hollywood screenwriters couldnt make it up: That Sony, one of the worlds biggest film producers, would be forced to pull a comedy about the assassination of North Koreas dictator after a ...
EDITORIAL
Oblivious to change
The world around us is undergoing many important changes while we sit around stewing in our own juices. US President Barack Obama is actually talking with Cubas Raul Castro, for example, bu...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Govt spokeswoman says bribery claims badly-played charade, heralds legal action if evidence not produced
2. Former premier Mitsotakis to meet President Papoulias to discuss political upheaval
3. Ship with 200 migrants off Pylos towed to Italy after passengers refuse to stop in Greece
4. Independent Greeks MP Haikalis claims attempted bribery for presidential vote
5. Greek PM Samaras confronts peril putting his Greek transformation to vote
6. PAOK loss at Giannina brings Olympiakos to within a point
more news
Today
This Week
1. Greek PM Samaras confronts peril putting his Greek transformation to vote
2. Independent Greeks MP Haikalis claims attempted bribery for presidential vote
3. Ship with 200 migrants off Pylos towed to Italy after passengers refuse to stop in Greece
4. Former premier Mitsotakis to meet President Papoulias to discuss political upheaval
5. Gov't spokeswoman says bribery claims 'badly-played charade,' heralds legal action if evidence not produced
6. Europe's drama in Greece needs final act to avoid tragedy
Today
This Week
1. Juncker warns Greeks against voting 'extreme forces' into power
2. Romanos and the dilemma
3. Samaras summons bond vigilantes with euro exit talk
4. A friendly yet firm message from Pierre Moscovici
5. High stakes
6. Gap between SYRIZA and New Democracy closing, says poll
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.