German Banks Could Handle Greek Restructuring, RP Online Says
By Patrick Donahue -
2011-06-14T13:17:39Z
Most German banks could withstand a Greek debt restructuring, Christoph Schmidt, an economic adviser to Chancellor Angela Merkel, told German website RP Online.
A “soft restructuring” would do little to alleviate Greece’s debt burden and sooner or later creditors, including the European Central Bank, will have to write off part of their Greek sovereign debt, Schmidt told the website.
Such a debt overhaul for Greece wouldn’t necessary trigger contagion to Ireland and Portugal, Schmidt said.
To contact the reporter on this story: Patrick Donahue in Berlin at at pdonahue1@bloomberg.net
To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net
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