Greek debt restructure needs ECB, IMF agreement: Germany

22nd May 2011, Comments 0 comments

German Finance Minister Wolfgang Schauble said Sunday that any restructuring of Greece's debt would require the agreement of the European Central Bank and International Monetary Fund.

"In the case of a rescheduling (of Greek debt) we of course need the agreement of the IMF and above all the ECB," Schauble said in an interview with Bild am Sonntag.

"We don't want to end up in a conflict with the European Central Bank under any circumstances.

"The experts have to tell us what is going to work and what is not going to work, because that will drive market concern. It's not going to be easy."

On Sunday two senior ECB officials repeated their opposition to a restructuring of Greece's massive debts, which they say is avoidable if the country follows the reforms negotiated by its creditors.

The institution fears a restructure would lead to the collapse of the Greek economy and banking system.

It could also impact on the eurozone as a whole, making borrowing by the banks of other countries in difficulty a problem.

Schauble was last week considering an agreement with Greece to extend its repayment deadline on the condition that private creditors were involved.

© 2011 AFP

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