HIGHLIGHTS-ECB’s Weber-Euro zone committed to solving Greek woes

MUNICH, April 30 (BestGrowthStock) – The euro zone is committed to
solving the Greek crisis while controlled bankruptcies of banks
should be allowed, European Central Bank Governing Council
member Axel Weber, said on Friday.

Below are highlights of Weber’s comments at the Munich
Economic Summit.

GREECE

“Let’s wait for the (Greek aid) programme that comes, let’s
not speculate what the programme will be. We have a clear policy
that we will solve this problem, we are all committed to it and
the IMF and the Europeans will negotiate it.”

“If consolidation in Greece, or in any other country, is
portrayed as something that is needed to please the IMF and to
please the Stability and Growth Pact, then that is a totally
wrong perception.”

BANK SOLVENCY

“I wouldn’t focus just on the euro area because have an
issue of banking system solvency around the globe.”

“Governments have the ability to tax as they have the
ability to reduce expenditure. That ability is very profound and
they should use both sides of the coin.”

“Consolidation is unavoidable. We cannot continue with
current debt levels.”

NEW STAGE OF CRISIS

“The question was if we are now in something new (new
crisis). We are not.”

EXIT ROUTES

“Now we are in the exit phase, governments have a clear exit
plan and that means consolidation.”

“I have the absolute trust in governments and central banks
to see through, as the economy recovers, the exit measure both
in the monetary policy and fiscal side.”

“It will be a longer way because we dealt with many
problems, but nevertheless the road ahead is clear for
everybody.”

ON BANK FAILURES

“We can never prevent a failure of a financial institution
and nor should we try to.”

“We should allow banks to fail but that should be happening
in an orderly structured manner.”

He added that central bankers would aim to present new
rules, including guidelines on banks’ capital requires, to
leaders at the G20 meeting in Korea in November.

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(Reporting by Marc Jones)

HIGHLIGHTS-ECB’s Weber-Euro zone committed to solving Greek woes