–Urged Quick Resolution Of Greece Debt Issue in G7 Conference Call
By Courtney Tower
OTTAWA (MNI) – Canadian Finance Minister Jim Flaherty warned Monday
that “there is a real danger of contagion stemming from the situation
in Europe,” and urged a quick resolution to the Greek crisis.
Flaherty told the annual conference of the International Insurance
Society, in Toronto, that he had been in conversation with European
colleagues about the dangers in a possible Greek default, and had
pressed for a quick resolution of the issue.
There were G7 conference calls among finance ministers and central
bankers Sunday and Monday, Flaherty later said in a brief meeting with
reporters.
“The key, I think is, and our message is, that delay is not
desirable, that it’s important to come to a resolution to avoid the
danger of contagion arising out of the situation in Greece.”
“So there is a sense on our part certainly that it’s important that
the situation be dealt with as expeditiously as possible,” he said.
A U.S. Treasury Department spokeswoman confirmed that the G7 call
had taken place, but did not provide additional information.
“There is substantial concern” in the G7, Flaherty said, speaking
after European Union finance ministers had given Greece two weeks in
which to approve tighter austerity measures in order to receive a
further 12 billion euros in emergency loans.
“We know that delay causes more difficulties, makes the situation
more expensive, and creates more strife at the end of the day.”
Canadian banks and insurers do not have great exposure to Greek
debt but Flaherty told the conference that Canada could be affected by
the impact on the world generally of the financial turmoil in Europe.
To reporters, he said: “I expect that it’s going to be resolved.
They’re working hard in Europe to accomplish that.”
**Market News International**
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