OECD's Gurria: default not necessary for Greece

BRUSSELS, July 12 Tue Jul 12, 2011 6:56am EDT

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BRUSSELS, July 12 (Reuters) - Private sector creditors must play a role in dealing with Greece's debt problems, but a default is not necessary for Athens to manage its obligations, the head of the OECD club of industrialised nations said on Tuesday.

"Greek default is not necessary, what is necessary is that the private sector participates in the solution," Angel Gurria, head of the Organisation for Economic Cooperation and Development told a news conference in Brussels.

He said it was not possible to continue with unlimited taxpayer-funded bailouts.

"This is not a process that can be extended indefinitely, the creditors have to contribute to the solution," Gurria said.

(Reporting by Robert-Jan Bartunek and Philip Blenkinsop)

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