Noyer Says Any Greek Default Would Mean Financing Whole Economy

European Central Bank Governing Council member Christian Noyer said any attempt by euro-area governments to adjust Greek debt that resulted in a default would mean financing the nation’s entire economy.

“Our position is extremely simple: if there is a solution that avoids a risk of default, it seems suitable,” Noyer told journalists in Paris today. “If you can’t find it, it’s better to avoid touching the debt. If despite everything you try to reduce the debt and you provoke a risk of default, you’ll have to finance the entire Greek economy.”