BERLIN (MNI) – ECB Governing Council member Jens Weidmann said
Friday that Greece might need another debt haircut at the end of its
current fiscal consolidation and reform program.
Speaking at a conference organized by German daily Sueddeutsche
Zeitung here, Weidmann said one could not deny the fact the Greece’s
public debt is currently not sustainable.
“The question if the necessity of a debt haircut arises from this
is in my view open,” said Weidmann, who is president of the German
Bundesbank.
“One could ask…if it would not make sense to propose a haircut –
which one will need in the end to gain access to capital markets again
– if the reforms, which really matter, have been carried out,” the
central banker said.
“The question is, if this could not be an incentive to carry out
the reforms,” he said.
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