Greece will be forced to restructure its debt but this will happen in an orderly manner, Nouriel Roubini, professor of economics at New York University, said Friday.
Speaking at the 50th ACI World Congress of foreign-exchange specialists in Budapest, Roubini said "reason will prevail and we will get an orderly restructuring of Greek debt."
He added that Greece's austerity program was "off track" and that there was little sense in authorities throwing good money after bad by bailing out Greece further.
Roubini said that a restructuring of Greek debt would not cause Spain to lose access to the capital markets.
All indebted peripheral euro-zone states have been hit by the strong value of the euro. The common currency rose to near $1.50 to the dollar at the start of May, pushed higher by the expectation of higher interest rates in the euro zone.
Roubini said that a value of $1.50 to the euro poses a serious problem to these countries and that the euro zone's economic performance did not justify the euro trading at $1.40.
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