Thinking about Greek emergency plan

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The Netherlands and a few other Euro zone countries are considering possible disaster scenarios and contingency plans for Greece, ”

Finance Minister Jan Kees de Jager told parliament on Thursday that these countries are not trying to bring this about, but are holding intensive and confidential talks on scenarios in which Greece is no longer able to meet its financial obligations.

He argued that there was a big difference between an organised and a chaotic default. The former scenario is now easier to manage than 18 months ago

Neither scenario would mean bankruptcy. Private investors but Greek debt to other countries would not disappear. It would need to be negotiated in the Paris Club, an informal group of financial officials from 19 of some of the world's biggest economies, which provides financial services such as war funding, debt restructuring, debt relief, and debt cancellation to indebted countries and their creditors.

Mr De Jager said the worst-case scenario would be for Greece to leave the euro zone, which would have major consequences for Greek society and pose the risk of contaminating other countries with Greece’ problems.


© Radio Netherlands Worldwide

© Radio Netherlands Worldwide

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