Sunday, January 23, 2011

Talk Of Debt Restructuring Hurts Greece

Reuters/New York Times
January 22, 2011

Greece's central banker said in a Sunday newspaper interview that talk of debt restructuring is hurting the country as it struggles to exit a huge fiscal crisis that has shaken the euro zone.

"I believe that even mere talk of debt restructuring hurts the country," Bank of Greece governor George Provopoulos told Sunday's Ethnos newspaper.

The finance ministry has repeatedly denied reports that it is in talks to restructure Greece's debt.

The debt-ridden nation is implementing austerity measures prescribed by the European Union and the International Monetary Fund in exchange for a 110 billion euro ($148.9 billion) bailout.

Provopoulos said the negative impact of a debt restructuring would far exceed the short-term pain caused by the austerity measures Greece is implementing and added that banks and government bond holders would also be negatively affected.


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