Crisis will strengthen euro: French bank boss

18th December 2011, Comments 0 comments

The euro will come out stronger from the debt crisis but governments must act quickly to put their plans into action, the chairman of French bank BNP Paribas said in an interview published Sunday.

"We are convinced that the euro will come out of the crisis stronger," Baudouin Prot told Italian business daily Il Sole 24 Ore.

He also dismissed the threat of a downgrade of France's AAA credit rating, saying: "Life will go on even after rating agency decisions."

"The important thing is that France does what it has to do in terms of putting its accounts in order and ensuring growth," he added.

Referring to a European Union summit this month at which all EU states except for Britain agreed to draft a strict pact with penalties to ensure cuts of budget deficits and debt, Prot stressed the urgency.

"The agreement in Brussels is positive and important but it's even more important that the decisions taken are implemented quickly. The scenario remains fragile and new plunges are possible," he said.

He also condemned a voluntary agreement for banks to take a 50-percent cut in their Greek bond holdings in order to reduce Greece's debt.

"The haircut was a terrible idea which had a strong impact in terms of a lack of confidence from investors," he said.

"It's very unpleasant, this incident is still not over, and it's unacceptable that some people are trying to raise the haircut to 80 percent," he added.

BNP Paribas is one of the biggest banks in the eurozone.

© 2011 AFP

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