Greek Default Grows More Likely

Greek Finance Minister Evangelos Venizelos was quoted in two newspapers stating that an “orderly” default was one possibility facing Greece. The Minister even laid out the possible structure the default would take and would include a 50 percent “haircut” for bondholders.

Eurozone officials were quick to dismiss the Minister’s comments but European Central Bank governing council member Klaas Knot told a Dutch daily a Greek default could no longer be ruled out, the first ECB policymaker to speak openly of the prospect.

“It is one of the scenarios,” Dutch daily Het Financieele Dagblad quoted him as saying. “All efforts are aimed at preventing this, but I am now less certain in excluding a bankruptcy than I was a few months ago,” Knot said, adding that he wondered “whether the Greeks realize how serious the situation is.”

Source: Reuters

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