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Sunday 23.07.2017 | Name days: Magda, Magone, Mērija

Rimsevics: Eurozone may benefit from Greece’s exclusion

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUAccording to Governor of the Bank of Latvia Ilmars Rimsevics, the Greek people have basically voted themselves out of Eurozone, which could benefit from this in the long run, as reported by lsm.lv.

In his interview to Latvijas Radio and LTV, Rimsevics mentioned that he believes Greece’s exclusion from Eurozone is the most likely scenario. He explained that «the current situation requires someone to open up their wallet, but no one is prepared to put 30-50 billion euros on the table».

Rimsevics did mention the possibility that one or multiple countries may take the initiative and gather the aforementioned sum of money. But as long as there is no money and no progress in talks, exclusion from Eurozone remains the most likely scenario.

Even though European leaders use every opportunity to convince Greece to change its position in talks, there is no possibility of writing off debts.

Rimsevics adds that Eurozone could benefit in the long run if Greece exits the monetary union. In addition, Latvia has no reason for concern.

The head of the Bank of Latvia also mentioned the decision of the European Central Bank to maintain support for Greece at its current level but request three times larger pledge amount as a form of guarantee. «With that, the previously pledged bonds are not considered safe enough to back EUR 89 billion,» – said Rimsevics. «This means that a moment will come when Greece will have to think on its own about dealing with this situation,» – added Rimsevics.

BNN had previously reported that the Greek Finance Minister resigned from his post earlier this week. Prior to his resignation, Greek voters supported his proposal to decline conditions set by international creditors.

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  1. Ilmars says:

    And what happens when Spain, Portugal, Malta, Cyprus, Italy follow Greece out of the eurozone. The anti-eurozone National Front is the second party in France and Briitain will be having a referendum on this issue shortly.
    The eurozone has brought misery and poverty to too many of its citizens. Even worse, much of this has been self inflicted by the incompetence of the ECB itself. After the global financial crisis, why did they throttle the eurozone economy with anti-inflationary austerity policies when expansionary policies were needed.
    The ECB is a useless bunch of incompetent stumblebums who will single handidly destroy the eurozone itself.
    The problem with bankers like Rimsevics is that they know the price of everything, and the value of nothing.

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    • jj says:

      Greece will not leave the eurozone – the vast majority of Greeks (including the government) want to stay in the eurozone, and they will.

      They voted on Sunday against austerity, which is understandable. However the cause of the austerity was not the ECB but the incompetence and corruption of Greek politicians which has existed since long before they joined the EU. Had the Greek politicians kept to the promises they made years ago (such as, for example, the privatisation of the port at Piraeus) the pain would have been much more bearable.

      The other countries you have mentioned have all suffered austerity due to the financial crisis of a few years back and are now growing again – none of them have any popular desire to leave the eurozone.

      (Britain is not having a referendum on the eurozone – they have never been in the eurozone!)

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  2. Ilmars says:

    Rimsevics comments were just part of a PR campaign to soften up public opinion for “grexit”. Decisions have already been made to throw greece out. No proposals from greece would have been good enough. Indeed, i saw a report that the EU is preparing humanitarian aid of food and water for greece.
    Hovever, there are going to be political repercussions around europe of how the greeks have been treated. This is just round one. The anti-eu genie is about to come out of the bottle.
    Regarding Britain – obviously Britain is not a member of the euro, but their referendum is about something bigger than a currency. It is about membership of the EU itself. Given the electoral victory of the euro sceptic Conservatives over the pro EU Labor Party, as well as opinion polls, Britain will likely exit the EU entirely.
    “we live in interesting times”

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  3. Linda says:

    Am sure the Eurozone will exist for many years to come …. unfortunately. The UK prefers to keep the pound but the referendum is about EU membership if Tories can’t renegotiate some of the terms of membership. UK does need to stay in the EU if only to keep German & French command in check.

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