FRANKFURT (MNI) – A Greek debt writedown can’t be excluded,
Bundesbank President Jens Weidmann said Wednesday, warning that even if
one was undertaken it would not necessarilly solve Greece’s core
problems.

In an interview with German daily Bild Zeitung, Weidmann again
stressed the importance of Greece getting its public sector under
control and making itself more competitive.

He said debt writedowns should not be viewed as an easy option for
a country that was responsible for creating its own problems. He said
this would make it hard for those endebted countries to regain trust in
their bond markets.

Weidmann again warned European political leaders of the risks of
leveraging the EFSF, saying that could not be seen as the solution.

He said the aim was to draw the right conclusions from the crisis
in order to ensure solid foundations for the monetary union.

–Frankfurt Bureau tel.: +4969720142, frankfurt@marketnews.com

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