– Sees No Coordinated Policy Response To Greek Elections

BERNE (MNI) – The Swiss National Bank is considering various policy
responses to a possible worsening of the Eurozone debt crisis, SNB
President Thomas Jordan said Thursday.

“Naturally, we consider all possible additional measures on a
running basis,” Jordan said during a press briefing following the
central bank’s monetary policy meeting here.

Asked about his recent comments regarding possible capital controls
and the likelihood of such a move, Jordan said: “This is to be seen in a
context of an emergency plan, should an escalation of the crisis require
it.” He said he was not prepared to discuss any details.

Jordan later rejected the criticism that all forms of capital
controls have historically proven ineffective.

Turning to the most imminent risk of an emergency, namely a Greek
exit from the Eurozone, Jordan said, “The direct impact on Switzerland
would be relatively limited. The exposures of Swiss banks to Greece is
exceptionally low.”

“What would be more problematic for Switzerland would be the
indirect consequents,” he conceded. “Should it come to further shocks on
financial markets, this could have implications for monetary policy and
the enforcement of the minimum exchange rate.”

Asked whether the election of anti-bailout parties in Greece this
coming weekend would require coordinated action by global central banks,
Jordan said that the responsibility lies primarily with Eurozone
institutions.

–Frankfurt Bureau tel.: +49-69-720 142, email: jtreeck@marketnews.com

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