Head of German exporters expects Greek default

9th May 2010, Comments 0 comments

The head of Germany's BVA exporters' association said he expects that Greece will sooner or later default on its debts despite an EU-IMF bailout package, in comments to appear in a Sunday newspaper.

"I fear Greece will be a long ordeal at the end of which will be the bankruptcy of the state," Anton Boerner told the Welt am Sonntag.

The rescue plan "might ensure that Greece doesn't declare a halt to payments on May 19", the date its next bond payments are due, but "the problems will only be pushed to another day," he said.

With Spain, Portugal and Italy also carrying large public debts, Boerner said he fears the European Central Bank will have no choice to "turn on the printing presses" and print money to reduce their deficits, but which will also weaken the euro.

"In five or ten years we'll have a weak currency," with "substantially higher inflation and interest rates that put a break on growth," he warned.

© 2010 AFP

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