TOKYO (MNI) – Greece must implement its pledged structural reforms
and fiscal reconstruction in order to receive further financial
assistance, the Nikkei reported, citing CEO of the European Financial
Stability Facility, Klaus Regling.
“If Greece leaves the euro and introduces own currency, it will
face catastrophic consequence,” Regling was quoted as saying in a recent
interview with the business daily in Berlin. “Such an option is not the
best scenario.”
“And to avoid such a consequence, we will support Greece,” he said.
While expressing its commitment to Greece’s fiscal reforms, Regling
stressed that carrying out necessary reforms is a precondition for the
extension of further loans, hinting that aid may be suspended should
Greece’s new government get cold feet about structural change.
Of the E246 billion already agreed upon for the Greek aid package,
approximately E100 billion have not yet been lent.
Referring to the situation in Spain, Regling said the EFSF has
enough power to lend money to the nation “at least for one year.”
“We can then examine a fresh framework,” he said.
yseki@marketnews.com
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