"Failure to reach an agreement would... mark the beginning of a painful course that would lead initially to a Greek default,” says Bank of Greece
Bank of Greece has warned for the first time that the country could be on a "painful course" to default and exit from both the eurozone and the EU.
The central bank also warned the country's economic slowdown would accelerate without a deal.
"Failure to reach an agreement would... mark the beginning of a painful course that would lead initially to a Greek default and ultimately to the country's exit from the euro area and, most likely, from the European Union," the Bank of Greece said in a report.
Bank of Greece firmly believes that striking an agreement with our partners is a historical imperative that we cannot afford to ignore, the central bank said in its Report on Monetary Policy 2014-2015 on Wednesday.
A compromise has been reached on the main conditions attached to this agreement and that little ground remains to be covered. Besides, the lowering of the primary surplus targets is a decision of paramount importance that significantly extends the time needed for fiscal adjustment and allows for additional degrees of freedom in the conduct of fiscal policy, the report added.
Equally important will be the reaffirmation and articulation in more specific terms of our partners’ willingness to provide debt relief, as initially stated at the Eurogroup meeting of 27 November 2012. What we need today is a viable debt deal which will spare future generations burdens that we have no right to saddle them with, Bank of Greece further said.
The central bank also warned the country's economic slowdown would accelerate without a deal.
"Failure to reach an agreement would... mark the beginning of a painful course that would lead initially to a Greek default and ultimately to the country's exit from the euro area and, most likely, from the European Union," the Bank of Greece said in a report.
Bank of Greece firmly believes that striking an agreement with our partners is a historical imperative that we cannot afford to ignore, the central bank said in its Report on Monetary Policy 2014-2015 on Wednesday.
A compromise has been reached on the main conditions attached to this agreement and that little ground remains to be covered. Besides, the lowering of the primary surplus targets is a decision of paramount importance that significantly extends the time needed for fiscal adjustment and allows for additional degrees of freedom in the conduct of fiscal policy, the report added.
Equally important will be the reaffirmation and articulation in more specific terms of our partners’ willingness to provide debt relief, as initially stated at the Eurogroup meeting of 27 November 2012. What we need today is a viable debt deal which will spare future generations burdens that we have no right to saddle them with, Bank of Greece further said.
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