The new Greek administration will have to repay the country’s debt, which is ultimately owed to taxpayers in the eurozone, even though talks on a debt-maturity extension are possible, European Central Bank executive board member Benoît Coeuré said Monday.
The new government to be formed in Greece in the coming days will have to respect its commitments and continue repaying its debts as talks on debt maturity start, Coeuré said in an interview with French radio station Europe1.
His comments came after Greek voters on Sunday handed victory to radical left party Syriza, led by Alexis Tsipras, in a popular rebellion against the bitter economic medicine Greece has swallowed for five years and as a rebuke to fellow European countries that prescribed it.
“Mr. Tsipras must pay, those are the rules of the game, there is no room for unilateral behavior in Europe, that doesn’t rule out a rescheduling of the debt,” Coeuré said. “If he doesn’t pay, it’s a default and it’s a violation of the European rules.”
The European Union’s institutions are eager to talk and cooperate with Greece, he added.
Tsipras had staked his campaign on resistance to austerity measures that include budget cuts and tax increases demanded in return for a €40 billion ($269 billion) bailout.
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.