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Forgive Greek debt, bank boss Dibelius urges

The Local · 4 Feb 2011, 10:22

Published: 04 Feb 2011 10:22 GMT+01:00

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“An insolvent Greece must not happen. There must therefore be a rescheduling or a restructuring of the Greek debt burden. There is probably no way around it,” bank boss Alexander Dibelius told daily Bild.

His comments come as Chancellor Angela Merkel prepared to reveal her much-anticipated paper for eurozone reform to fellow leaders at a lunch in Brussels on Friday.

Rescheduling or restructuring would mean creating new loans for Greece on more generous terms than the present loans, with the aim of restoring Greece’s creditworthiness, though at a cost to European partners such as Germany that are financing the loans.

Dibelius, who heads the bank in Germany, Austria, Russia and central and Eastern Europe, said that even though Greece generated just 2 percent of Europe’s total economic output, it had become a symbol for the euro-debt crisis and therefore could not be allowed to fail.

“It must not get to a situation in which a great currency system fails.”

As Europe's largest economy and the strongest coming out of the global recession, Germany had a huge responsibility, he said.

“We must not forget that Germany has so far profited much more from the euro than the debt crisis has cost it. The benefits are so enormous, Germany is so strong today, that it could almost theoretically afford a restructuring of Greece on its own.”

Of course it would not come to that, though, he added.

Story continues below…

Dibelius was also critical of the many eurozone stabilisation proposals that have been floated in recent months.

“There are too many different ideas in euro countries and in Brussels to rescue the euro. The discussions and constant news unsettle capital markets and investors,” he said.

The Local/djw

The Local (news@thelocal.de)

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Your comments about this article

11:20 February 4, 2011 by pepsionice
This is precisely what the public predicted to occur. If I were a German....I'd kick Goldman Sachs out of the country. The Greeks need to pay their debt....otherwise, they'd get the idea that everything in life is free.
11:41 February 4, 2011 by auniquecorn
Lets see here.

it states: The (German boss) of the top US investment bank Goldman Sachs, Get the hint? (German Boss)

Also, another reason for (HIS) reasoning: (Alexander Dibelius)

Get it? (Dibelius) with a name like that, you can´t be more Greek.

He´s got his PLAN, I bet at the next presidential elections in greece, we´ll see Mr. Dibelius at the top of the ballot.

Politics at its BEST.
14:30 February 4, 2011 by marimay
Yeah, gross.
14:54 February 4, 2011 by Nemesis
Goldman Sachs should be banned from operating in Europe.
16:05 February 4, 2011 by Mingus
Goldman Sucks !
16:50 February 4, 2011 by mehta_p
if greek is getting shattered through just a wave of finicial crisis, then they no-more deserve to have Euro.

There are plenty countries whose currency can not be compared to Euro but still their civilians live happily.

Greek politics and tax-issue have pushed them into bankruptcy-like situation.

Changing from Euro might help to improve their businesses.

Greek should learn their lessons. No forgiveness.
17:08 February 4, 2011 by wood artist
Well, if nothing else, Goldman Sachs is consistent.

In the US, there is a phrase going around that describes this situation very accurately.

We privatize profits and socialize loss.

Here again, we have a spokesman for a private bank suggesting the best thing we could do is socialize loss. Why? Well, because then the bank would come out ahead, and, as everyone knows, what's good for Goldman Sachs is the most important thing. Right?

Enough of this...manure. If you borrowed the money, YOU pay it back. If you don't like the terms, maybe you shouldn't have borrowed in the first place. Put on your Big Boy knickers and deal with it!

03:00 February 5, 2011 by Anton Grambihler
US investment bank Goldman Sachs needs be the one that takes the loss if there is any rescheduling or restructuring of the Greek debt.
23:57 February 5, 2011 by cambiste
goldmans are not known for kindness.they must have an exposure to greece which they

would like others to take off their hands.
12:46 February 6, 2011 by tallady
Forgive the debt ! Greece used a lot of creative accounting to keep it hidden until it came time to pay...Goldman Sachs has a lot of gaul to make a statement like that.

I agree with auniquecorn,,there are political motives here.
19:40 February 6, 2011 by derExDeutsche
ARGH!!! Careful there, Germans!!!

You're all starting to sound like, You'ze just o' Bunch o' Teabaggin' Racists !

Nothing to see here, MoveOn !
16:02 February 7, 2011 by catjones
Restructure and survive or face default and then restructure.
20:41 February 15, 2011 by Myles1965
Why should Greece be bailed out by Germany? I think the Germans should let them go backrupt. The only way

the Germans should help the Greeks is if the Greeks agree to the German terms.

As an American, I can't believe anyone would listen to Goldman Sachs, they are corrupt and are destroying the American economy. I think Ronald Reagan had it wrong, he called the Soviet Union the "Evil Empire." I think that the real "Evil Empire" is Goldman Sachs.
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