A haircut, or loss, on Greek debt “can΄t be excluded,” European Central Bank Governing Council member Jens Weidmann tells Germany΄s mass circulation newspaper Bild Zeitung in an interview pre-released Wednesday.
Still, he warns that this would not solve the source of Greece΄s problems. “Greece must get a handle on its public sector and make its economy more competitive” Weidmann, who also heads the Deutsche Bundesbank, said.
“A haircut cannot become an attractive way out of self-inflicted problems,” he says.
The central banker also warns against constantly expanding the euro zone΄s rescue funds, saying that steadily increasing liability or leveraging the facilities “cannot be the solution.”
(source: Dow Jones)
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