German finance minister says Greece will not defaulthttps://indianexpress.com/article/news-archive/web/german-finance-minister-says-greece-will-not-default/

German finance minister says Greece will not default

German finance minister Wolfgang Schaeuble said on Sunday that Greece would not default,but warned that if Athens did exit the eurozone it would be damaging not only for the zone as a whole but also Greece

German finance minister Wolfgang Schaeuble said on Sunday that Greece would not default,but warned that if Athens did exit the eurozone it would be damaging not only for the zone as a whole but also Greece.

“I think,it will not happen that there will be a state bankrupt in Greece,” Schaeuble said at a meeting with business leaders in Singapore.

Greece has to take a lot of very serious reforms and this will harm. Everyone is trusting that the Greek government is doing what is necessary.

Greece is locked in talks with the European Union,European Central Bank and International Monetary Fund on a new set of spending cuts and reforms in exchange for the next tranche of loans saving the debt-crippled country from bankruptcy.

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“We do not see that there is any sense to speculate on Greece leaving the Euro,” Schaeuble said.

“That would be very damaging for Greece and the euro,” the German finance minister said.

Greek PM sees austerity deal by Oct 18 summit

Athens: Greece expects to agree a new austerity package with its lenders and for the EU and IMF to bridge their differences on how to cut the country’s debt by the time EU leaders meet on October 18-19,Greek Prime Minister Antonis Samaras said.

Greece is locked in talks with the European Union,European Central Bank and International Monetary Fund on a new set of spending cuts and reforms in exchange for the next tranche of loans saving the debt-crippled country from bankruptcy.

The talks have dragged on longer than expected,and Athens says it will run out of money by the end of November without the 31.5 billion euro ($40.85 billion) tranche.

In an interview with the Sunday edition of the Greek daily Kathimerini,Samaras said he expected a deal in time for the EU summit.

“By then,two things will have happened,” he said.

“First,we will have completed in full the agreement on the fiscal and structural prior actions for the disbursement; and second,Europe and the IMF will have most likely overcome their different estimates as to how the debt sustainability will be assured.”