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Ex-Greek Minister Manos Says Vote May Trigger Default, Euro Exit

Greece’s former Finance Minister Stefanos Manos said Prime Minister George Papandreou’s decision to call for a referendum on its bailout may push the country to default on its debt and force it to exit the euro.

“If it continues with Papandreou and the referendum, we will end up with a default and the default will push us into the drachma,” said Manos in an interview with Dublin-based RTE today. Manos said the referendum call puts in jeopardy the payment of the next installment of bailout funds by the International Monetary Fund and the European Union.

Papandreou’s party should oust the prime minister to halt the referendum, according to Manos, who said Greeks will probably vote against the referendum out of anger towards Papandreou.

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