29 Apr 2015
Greece ‘situation is indeed precarious’ – ECB’s Weidmann
FXStreet (Mumbai) - In his speech, Bundesbank president and the European Central Bank (ECB) Governing Council member Jens Weidmann said that the situation in cash-strapped Greece remains precarious, the head of Germany’s central bank and ECB policymaker Weidmann said on Tuesday, criticizing Athens for its positions in debt talks.
“In Greece, the situation is indeed precarious," Greece’s debt "was high before the crisis,"
The "haircut" that creditors took on Greek debt in 2012 "only interrupted the upward trend for a short time,"
"This type of contagion danger is lower than in the past,"
He further added, "the new Greek government has again dashed initial hopes here," the German central banker said, noting that it is "increasingly apparent that the economy is going clearly worse than expected."
“In Greece, the situation is indeed precarious," Greece’s debt "was high before the crisis,"
The "haircut" that creditors took on Greek debt in 2012 "only interrupted the upward trend for a short time,"
"This type of contagion danger is lower than in the past,"
He further added, "the new Greek government has again dashed initial hopes here," the German central banker said, noting that it is "increasingly apparent that the economy is going clearly worse than expected."