Wellink: dont force banks to help Greece

12th June 2011, Comments 0 comments

Banks should not be forced to help Greece survive its economic crisis, says the head of the Dutch Central Bank, Nout Wellink.

Banks should only assist Greece on a voluntary basis, Mr Wellin, said in a radio interview.

Trichet Mr Wellink’s comments support remarks made earlier by the head of the European Central Bank, Jean-Claude Trichet. The ECB fears any debt rescheduling could be seen as a Greek default and could seriously harm Europe’s financial sector.

Mr Wellink’s remarks are at odds with the course pursued by Dutch Finance Minister Jan Kees de Jager, who has called on banks and pension funds to extend the terms of their loans to Greece.

Self-interest Greece should be helped, Mr Wellink argued, not only because they are part of Europe but also out of self-interest: “We have created a system in which everything is connected with everything else.”

If things go wrong in Greece, the damage for the Netherlands would, in consequence, be “very, very, very serious”, Mr Wellink added. That, he concluded, could trigger an avalanche which would cause problems not only in the Netherlands but in the whole world.

© Radio Netherlands Worldwide

© Radio Netherlands Worldwide

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