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18 Mar 2015
Greece should follow Cyprus footsteps – Euro Group Chief Dijsselbloem
FXStreet (Mumbai) - In an interview on Tuesday, Euro group chief and Dutch finance minister, Jeroen Dijsselbloem suggested that the 2013 Cypriot bail-in - accompanied by temporarily shutting banks and restricting the flow of capital - may be an example for Greece to follow.
Bank holidays and capital flows restrictions may save Greece from dropping out of the currency bloc, Euro group chief Jeroen Dijsselbloem said Tuesday.
Dijsselbloem noted, "It’s been explored what should happen if a country gets into deep trouble - that doesn’t immediately have to be an exit scenario,"
For Cyprus, "we had to take radical measures, banks were closed for a while and capital flows within and out of the country were tied to all kinds of conditions, but you can think of all kinds of scenarios."
"It is also important to keep Greece on track,"
"The recovery in Greece went remarkably well, but due to political uncertainties, there will be setbacks. My political commitment is to keep the euro zone intact and strengthen it, and that is where I will focus."
Bank holidays and capital flows restrictions may save Greece from dropping out of the currency bloc, Euro group chief Jeroen Dijsselbloem said Tuesday.
Dijsselbloem noted, "It’s been explored what should happen if a country gets into deep trouble - that doesn’t immediately have to be an exit scenario,"
For Cyprus, "we had to take radical measures, banks were closed for a while and capital flows within and out of the country were tied to all kinds of conditions, but you can think of all kinds of scenarios."
"It is also important to keep Greece on track,"
"The recovery in Greece went remarkably well, but due to political uncertainties, there will be setbacks. My political commitment is to keep the euro zone intact and strengthen it, and that is where I will focus."