Dutch central bank says it considers possible Greek default

23rd September 2011, Comments 0 comments

The Dutch Central Bank is looking at various scenarios for the eurozone's financial crisis including a possible Greek debt default, a bank spokeswoman said on Friday.

"It would not be realistic to say that possible bankruptcy is not excluded," Flore Kraaijeveld told AFP, but she added "It's not the scenario we are focused on, we are doing everything to prevent that scenario."

New Dutch Central Bank (DNB) president Klaas Knot told Dutch media on Friday that possible Greek bankruptcy was a consideration.

"It's a scenario. I'm not saying Greece won't go bankrupt," he told the economics daily the Fincancieele Dagblad.

"Everything is being done to prevent it, but I'm now less sure about excluding a bankruptcy than I was a few months ago," added Knot, who also sits on the European Central Bank's management team.

Dutch Finance Minister Jan Kees de Jager last week said he was worried about Greece falling behind in its economic reforms, key to further aid for the debt-ridden country.

He warned that aid would then stop, not only to Greece, but all countries which did not implement austerity measures to put their economies in order.

The Dutch top economic officials' comments come as Greece, which received a 110-billion-euro ($150-billion) European Union-IMF-European Central Bank rescue last year and is hoping for more aid, is considered by many financial analysts to be on the edge of defaulting on government debt, putting the eurozone at risk.

© 2011 AFP

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