VIENNA (MNI) – It is impossible to make reliable predictions with
regard to a possible haircut on Greek sovereign debt, European Central
Bank Governing Council member Ewald Nowotny said Monday.
Speaking to reporters on the margins of a panel discussion, the
head of the Austrian National Bank said that currently “nobody can
reliably say” whether there will be a haircut on Greek government debt,
but “it is not a bad strategy to use the worst case scenario” in
calculations.
Asked whether ECB funds might be used for the European bailout fund
EFSF, Nowotny stressed that there had been “a clear decision that no
direct ECB funds will be used.”
In a situation where no definite decision by the EU has yet been
made on further bank bailouts, banks are advised to “see to it that they
are as healthy as possible,” Nowotny said.
“In this situation I would not rely on anyone else”, he added.
–Frankfurt bureau tel.: +49-69-720142. Email: frankfurt@marketnews.com
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