Ex­ten­sion of ma­tu­ri­ties will not solve prob­lem

Kathimerini English - - Business & Finance -

Cit­i­group Inc chief econ­o­mist Willem Buiter said that ex­tend­ing the ma­tu­ri­ties of Greek debt won’t solve the coun­try’s un­der­ly­ing sol­vency prob­lem. “Ex­ten­sion of ma­tu­ri­ties is of course the fi­nal op­tion that would al­low them at least to get over the fund­ing gap in 2012,” he said in an in­ter­view with Ken Pre­witt on Bloomberg Ra­dio from Edinburgh. “It doesn’t solve the un­der­ly­ing sol­vency prob­lem of the Greek sov­er­eign.” Stan­dard & Poor’s yes­ter­day cut the coun­try’s debt rat­ing two notches to B, cit­ing the like­li­hood that Greece may need to re­struc­ture its debt. Euro-re­gion of­fi­cials said af­ter an un­sched­uled May 6 meet­ing in Lux­em­bourg that Greece needs “a fur­ther ad­just­ment pro­gram.” “It’s clear that Greece will have to find money some­where in a hurry,” said Buiter. Greece “can’t get it in the mar­ket, so we ei­ther need a new pack­age, an ex- ten­sion of the ex­ist­ing pack­age, or rapid pri­va­ti­za­tion of as­sets.” (Bloomberg)

Newspapers in English

Newspapers from Greece

© PressReader. All rights reserved.