Trichet Reiterates Opposition to Compulsory Investor Involvement

European Central Bank President Jean-Claude Trichet reiterated his opposition to any Greek bailout that forces private investors to participate.

“To embark in a compulsory way of dealing with this issue is not advisable,” Trichet said told The Times newspaper in an interview conducted on June 13, according to a transcript published by the Frankfurt-based ECB. It’s up to governments to deal with the problem and the ECB is “telling them that doing anything that would create a credit event or selective default or default is not advisable,” Trichet said.

Trichet also said a withdrawal from the euro area by Greece, Portugal or Ireland “is not a working assumption that anybody considers.”

Trichet said he has “no plan” for the time after his eight-year term as ECB president ends on Oct. 31.

“I will see after the end of my mandate,” he said. “At the present moment I still have close to five months ahead of me and quite a lot of challenges obviously.”

To contact the reporter on this story: Gabi Thesing in London at gthesing@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net

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