IMF chief calls for public creditors to fill Greek debt gap
PARIS — IMF chief Christine Lagarde said Wednesday that public creditors would have to pitch in to help Greece if private banks did not agree to a big enough cut in money owed to them.
If private creditors did not successfully renegotiate a debt writedown with Greece, then "public creditors... will also have to contribute to the financial effort," Lagarde told reporters in Paris.
Largarde was responding to a report in Wednesday's edition of the Financial Times that said the IMF was pressing the European Central Bank to forego potential profits on the €40 billion ($52 billion) in Greek debt it holds.
Lagarde also said that if the European Union managed to set up an effective firewall to protect larger economies such as those in Italy and Spain against market speculation, then non-eurozone countries would contribute to it. — Agence France-Presse
If private creditors did not successfully renegotiate a debt writedown with Greece, then "public creditors... will also have to contribute to the financial effort," Lagarde told reporters in Paris.
Largarde was responding to a report in Wednesday's edition of the Financial Times that said the IMF was pressing the European Central Bank to forego potential profits on the €40 billion ($52 billion) in Greek debt it holds.
Lagarde also said that if the European Union managed to set up an effective firewall to protect larger economies such as those in Italy and Spain against market speculation, then non-eurozone countries would contribute to it. — Agence France-Presse
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