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Ecb Trichet: Won't Allow Default Of Greece, Spain Or Portugal

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European authorities will not allow Greece, Spain or Portugal to default on their debt, ECB President Jean-Claude Trichet pledged in an interview published Sunday.

"We won't allow this," Trichet was quoted as saying by German weekly Welt am Sonntag (WamS). "We did not create the Maastricht Treaty in the spirit of being able to retreat from it," he added.

The ECB President once again defended last month's decision of the central bank to purchase government bonds. "The situation was too dramatic," he said, noting that Europe had been the "epicenter of the crisis" at that moment.

Trichet once again promised that the ECB will continue to deliver price stability in the Eurozone. "Because anyone who is endangering price stability is bringing Europe into danger," he said.

The ECB is trying to print it's way out of this mess? Looks like all the crap will end up in the hands of the ECB.

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June 20 (Bloomberg) -- Greece won’t restructure its debt, and December tranches of international loans are secure provided the nation keeps implementing its stability plan, Finance Minister George Papaconstantinou told the Proto Thema newspaper.

Greece “battled to avoid and avoided” restructuring its debt with the help of the 110 billion-euro ($136.3 billion) European Union and International Monetary Fund loan package, the newspaper cited Papaconstantinou as saying in an interview published today.

“There is no such scenario” where Greece would exit the euro region and re-adopt the drachma, Papaconstantinou said. No country is examining leaving the currency union, he added.

Papaconstantinou said structural changes being pushed through to bolster competitiveness and price controls will help contain inflation, and prices may eventually start to drop. A debt restructuring would be “catastrophic” as Greece still has major borrowing needs and must maintain investors’ trust, Papaconstantinou said.


Hmmm.... so that's an admission that Greece still hasn't dealt with the fact that it wants (needs) to spend more than it taxes.

Still I'm sure it's all contained and the global stock markets are doing very well at the minute. The recovery must be locked in.

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The ECB is trying to print it's way out of this mess? Looks like all the crap will end up in the hands of the ECB.

Not allowing defaulting is the new defaulting. Lending the money not to default means they have/will default. To make this statement is an admission they cannot pay their debts. So, now the truth we knew all along has been released.

Don't think I will buy any tmoney market bonds.....

Edited by plummet expert
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  • 433 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
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      • Even
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      • up 5%

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