ECB Governing Council Member Says Greek Austerity Only Solution

Describing the possibility of a restructuring of Greek debt as a “horror story” European Central Bank Governing Council member Christian Noyer said the only solution available to Greece was through the adoption of an austerity program highlighted by massive spending cuts.

“There’s no solution possible” for Greece other than its austerity program, Noyer, Bank of France governor, told reporters in Paris today. “Restructuring is not a solution, it’s a horror story.” If the country fails to meet the terms of its bailout, Greek government debt will be “ineligible as collateral” at the ECB, he said.

Source: Bloomberg

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