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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsIMF's Lagarde: Greece's Default Not An Option
PARIS (Dow Jones)--The head of the International Monetary Fund said Tuesday a default by Greece was not an option, even as negotiations between the debt-laden country and its creditors appeared to be deadlocked.
The default of Greece "would not be envisageable," IMF Managing Director Christine Lagarde said, speaking in an interview with French television channel France 2.
Still, markets are increasingly expecting Greece to default on its debt obligations. Negotiations between private bondholders, Athens and euro-zone officials on financing and debt write-downs are gridlocked. Time is quickly running out for a deal to be done, as Greece faces a EUR17.5 billion in bills and bonds coming due in March.
The IMF fears that a default in Greece could cause borrowing costs to shoot up in other ailing euro-zone countries, such as Italy and Spain, to levels that require bailout loans. Also, the fund says euro-zone banks don't have enough cash on hand to cover losses from a Greek default, and the subsequent mayhem could create another global financial crisis.
more: http://online.wsj.com/article/BT-CO-20120124-712827.html
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I think there will be a deal eventually to avoid an ugly uncontrolled default but regardless whatever deal comes out of this it wont be pretty.
Fool Count
(1,230 posts)"Greek default is an option".
DCBob
(24,689 posts)shit is going to hit the fan.
Prometheus Bound
(3,489 posts)DCBob
(24,689 posts)they just dont want it spill over into other risky nations and then the entire Eurozone and then the whole globe. They need a firewall around Greece.. but that is proving to be elusive.
Nye Bevan
(25,406 posts)She seems to want to be the female John Boehner.