Restructuring a euro zone country's debt should be a last resort and Greece is solvent insofar as it is willing to sell some of its assets, European Central Bank policymaker Lorenzo Bini Smaghi said on Monday.
"Imposing haircuts on private investors can seriously disrupt the financial and real economy of both the debtor and creditor countries ... This is why such restructuring should only be the last resort, i.e. when it is clear that the debtor country cannot repay its debts," the executive board member said in the text of a speech, to be delivered in Berlin.
Bini Smaghi added that from a rational viewpoint "Greece should be considered solvent and should be asked to service its debts."
REUTERS
