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Rimsevics: Eurozone may benefit from Greece’s exclusion

Ilmars Rimsevics/flickr.com/Bank of Latvia.
According to Governor of the Bank of Latvia Ilmars Rimsevics, the Greek people have basically voted themselves out of Eurozone, which could benefit from this in the long run, as reported by lsm.lv.

In his interview to Latvijas Radio and LTV, Rimsevics mentioned that he believes Greece’s exclusion from Eurozone is the most likely scenario. He explained that «the current situation requires someone to open up their wallet, but no one is prepared to put 30-50 billion euros on the table».

Rimsevics did mention the possibility that one or multiple countries may take the initiative and gather the aforementioned sum of money. But as long as there is no money and no progress in talks, exclusion from Eurozone remains the most likely scenario.

Even though European leaders use every opportunity to convince Greece to change its position in talks, there is no possibility of writing off debts.

Rimsevics adds that Eurozone could benefit in the long run if Greece exits the monetary union. In addition, Latvia has no reason for concern.

The head of the Bank of Latvia also mentioned the decision of the European Central Bank to maintain support for Greece at its current level but request three times larger pledge amount as a form of guarantee. «With that, the previously pledged bonds are not considered safe enough to back EUR 89 billion,» – said Rimsevics. «This means that a moment will come when Greece will have to think on its own about dealing with this situation,» – added Rimsevics.

BNN had previously reported that the Greek Finance Minister resigned from his post earlier this week. Prior to his resignation, Greek voters supported his proposal to decline conditions set by international creditors.

BNN
07-07-2015
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