Merkel: can't allow Greece to suffer Lehman's fate

German Chancellor Merkel said a long-term solution was needed for Greece.

Merkel: can't allow Greece to suffer Lehman's fate

Chancellor Angela Merkel said on Wednesday a long-term solution, not a quick fix, was needed for Greece and that Athens could not be allowed to suffer the same fate as collapsed U.S. investment bank Lehman Brothers.

Speaking after meeting the head of the International Monetary Fund, Merkel added: "We are on a good path now" towards a solution of debt-ridden Greece.

European Central Bank and IMF officials are negotiating a three-year fiscal authority plan with Athens as a condition to release emergency loans to debt-stricken Greece.

"I think the handling of the Greece case shows that everyone knows we cannot allow the same situation with countries as with Lehman Brothers," she told a news conference.

Earlier, IMF Managing Director Dominique Strauss-Kahn said it was impossible to give any details on what would be finally agreed with Greece until the talks with Athens were concluded. He declined to say how much aid could be released.

A German news agency reported that German Economy Minister Rainer Bruederle, on a trip to Brazil, had said the aid for Greece would be worth some 135 billion euros over 3 years.

Asked about this report, Merkel said she would only be able to talk about the value of the aid package when the fiscal programme the IMF and EU were negotiating with Greece was agreed.

She was speaking after a meeting with Strauss-Kahn and the chiefs of the World Trade Organisation, the World Bank, the Organisation for Economic Cooperation and Development and the International Labour Organisation.

On the global economy, Merkel said exit strategies from fiscal support measures must be coordinated internationally as much as possible.

"We agreed today that the exit from state support measures -- so-called exit strategies -- must be coordinated as much as possible," Merkel said.

Reuters

Last Mod: 28 Nisan 2010, 22:25
Add Comment