ECB’s Bini Smaghi Says Restructuring Greek Debt Won’t Work
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European Central Bank Executive Board member Lorenzo Bini Smaghi rejected any debt restructuring for nations such as Greece as it would “jeopardize all of Europe.”
A debt restructuring, whether “hard or soft,” would require a recapitalization of banks, which would be hard to carry out in a country that has defaulted, Bini Smaghi said in a speech in Milan today.