Greece Certain to Find ‘Life After Debt,’ OECD’s Gurria Says
Gurria, a former Mexican finance minister, said Greece faces problems similar to those once tackled by his own nation.
“Mexico never defaulted, but they negotiated with their own creditors a voluntary arrangement,” Gurria said today in an interview with Bloomberg Television in Rome. “After a few years, we moved along to other, more definitive solutions. In the end, I can tell you: there’s life after debt.”
One year after the 110 billion-euro ($160 billion) bailout that aimed to end the region’s debt crisis, Greece is in danger of defaulting without a new rescue package. Some European countries, led by Germany, have pushed for private investors to shoulder some of the burden of a new aid plan and are seeking commitments from banks and insurers to roll over 30 billion euros of bonds into longer-maturity debt to ease the country’s financing needs.
The final solution for the Greek debt crisis will have to involve private creditors, Gurria said.
“Every day there is a new plan, there are so many plans,” he said. “We’re not very well coordinated in explaining and speaking. We should speak with a sole voice. I think we are still not there. I think the ultimate solution will have to involve creditors.”
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