AACHEN, Germany, May 13 (Reuters) – Restructuring Greece’s sovereign debt would pose potentially incalculable risks to the overall euro zone and will not solve the country’s fiscal crisis, a senior European Central Bank official said on Friday.
Speaking in the German city of Aachen, ECB Executive Board member Juergen Stark warned that market speculation over a debt restructuring was based on the “false assumption” that Greece was insolvent.
“I would warn against underestimating the massive harmful effects a debt restructuring would cause for the country involved and for the euro zone as a whole,” he said, adding the risks would be far reaching and effectively incalculable.
Full story: Debt restructuring won’t help Greece -ECB’s Stark | Reuters