UPDATE 1-Merkel: can't allow Greece to suffer Lehman's fate

Wed Apr 28, 2010 2:05pm EDT

* Says need long-term solution, not quick fix, for Greece

* Says on the right path now for solution to Greece woes

* Declines to say how big aid package could be

(Adds Lehman quote, background)

BERLIN, April 28 (Reuters) - Chancellor Angela Merkel said on Wednesday a long-term solution, not a quick fix, was needed for Greece and that Athens could not be allowed to suffer the same fate as collapsed U.S. investment bank Lehman Brothers.

Speaking after meeting the head of the International Monetary Fund, Merkel added: "We are on a good path now" towards a solution of debt-ridden Greece.

European Central Bank and IMF officials are negotiating a three-year fiscal authority plan with Athens as a condition to release emergency loans to debt-stricken Greece.

"I think the handling of the Greece case shows that everyone knows we cannot allow the same situation with countries as with Lehman Brothers," she told a news conference.

Earlier, IMF Managing Director Dominique Strauss-Kahn said it was impossible to give any details on what would be finally agreed with Greece until the talks with Athens were concluded. He declined to say how much aid could be released.

A German news agency reported that German Economy Minister Rainer Bruederle, on a trip to Brazil, had said the aid for Greece would be worth some 135 billion euros over 3 years.

Asked about this report, Merkel said she would only be able to talk about the value of the aid package when the fiscal programme the IMF and EU were negotiating with Greece was agreed.

She was speaking after a meeting with Strauss-Kahn and the chiefs of the World Trade Organisation, the World Bank, the Organisation for Economic Cooperation and Development and the International Labour Organisation.

On the global economy, Merkel said exit strategies from fiscal support measures must be coordinated internationally as much as possible.

"We agreed today that the exit from state support measures -- so-called exit strategies -- must be coordinated as much as possible," Merkel said. (Reporting by Paul Carrel and Sarah Marsh; writing by Erik Kirschbaum; Editing by Ron Askew)

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Comments (4)
surfish wrote:
Funny, GS involved with Lehman and Greece, no?

Apr 28, 2010 4:15pm EDT  --  Report as abuse
WarriorWhite wrote:
Merkel’s propositions seems to be based on realities, and IMF usually supports nations with such loans. Also the exit strategy is clearly being outlined. Hope to hear good news for Greece.

Apr 28, 2010 4:19pm EDT  --  Report as abuse
drewsands wrote:
Greece should be allowed to go back to there own currency. Greece has nothing in its future and will never be able to contribute to the EU.
Merkel and the German people have industry and save every penny and by far the cheapest self centered country in the history of man and women. They are low lives. The men are to affraid to fight in another country and there woman get abused. Merkel is just a token.

Apr 28, 2010 6:02pm EDT  --  Report as abuse
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