The warning comes from the president of the German central bank, Jens Weidmann. And it concerns Greece, but not only. "That would be relatively unpalatable, for Greece and others, but the hypothesis of a default on the country's payments cannot be ruled out," Weidmann warned today.
“Because if Athens does not implement its recovery and reform program on time – explained the president of the Bundesbank – it will be consequential that the payments of the tranches of aid to the country from the European Union and the International Monetary Fund will be blocked. Without these funds, Greece cannot meet the due dates on its government bond payments”.
According to the German central banker, it must be borne in mind that a possible default on payments by Athens "that would be a relatively unpalatable scenario, not only for Greece but also for others. However, if the Greek government's reform program is not implemented, then the basis for further payments of EU and IMF aid would disappear".
After the voice of Bob Traa, representative of the IMF in Greece, another authoritative exponent of the financial world clearly explains the risk that Greece runs, together with other countries. Meanwhile, the issue has prompted France to take a stand: “Default Greek? It is not a hypothesis under study, it is not part of our strategies,” said Finance Minister François Baroin. At the recent meeting in Poland, the economic leaders of the euro area decided to postpone the decision on the next tranche of aid until October. It will be established on the basis of assessments by EU and IMF technicians on the country's progress on its commitments.
