BRATISLAVA: The euro zone debt crisis' contagion has spread and policymakers should assess the bloc's preparedness for the possibility of a coordinated bankruptcy in Greece if the situation there turns to be unsustainable, Slovak Finance Minister Ivan Miklos said on Saturday.
"We are now waiting for results of the IMF and EU inspectors. This should be the basis for a clear assessment whether Greece's position is sustainable, or whether bankruptcy and a write-off of part of the debt are inevitable and whether it will be needed to prepare a new stabilisation programme," Miklos told Czech daily Lidove Noviny in an interview.
The report from the International Monetary Fund, the European Central Bank and the European Commission -- the "Troika" of lenders -- could be ready in 2 to 3 weeks.
It will focus on the country's progress towards set fiscal targets and will play a crucial part in any re-examination of private sector involvement in the second bailout package for Greeks.
"In case we draw a conclusion that the situation in Athens is not sustainable, we must say how are we prepared for a coordinated bankruptcy and how will we prevent further contagion," Miklos said.
Miklos, a fiscal hawk, said common euro bonds would be a bad solution for the single currency area and member states should rather push for strict rules, even allowing for curbs on a country's sovereignty if necessary.
Comments
Comments are closed.