BRUSSELS Nov 15 Resolving Greece's problems
will probably require a writedown of at least part of its debt,
and Spain urgently needs to seek a bailout, European Central
Bank Governing Council member Luc Coene was quoted as saying.
Coene made the comments at a debate at the University of
Ghent, Belgian daily De Standaard reported on Thursday.
On Greece, Coene appeared to share the position of the
International Monetary Fund, which believes that some Greek debt
must be written down to make the burden manageable.
Germany, the biggest contributor to euro zone bailout funds,
has repeatedly rejected the idea of euro zone governments
writing down their holdings of Greek debt, saying it would be
Banks, insurers and other private sector investors holding
about 206 billion euros of Greek bonds took a 53.5 percent
reduction on the nominal value of their securities earlier this
Greece's total debt it forecast to rise to nearly 190
percent of gross domestic product next year, meaning it is
highly unlikely to fall back to 120 percent of GDP by 2020, the
level the IMF has said is the maximum sustainable in the long
Coene also expressed concern about Spain, whose 10-year debt
yields have pushed back to around 6 percent in recent days.
"Spain urgently needs to call on the emergency aid," Coene
said, according to De Standaard, adding that if financial
markets again became unsettled then it was not clear what
further ammunition the European Central Bank would have.
Having covered its public funding needs for 2012, Madrid has
resisted pressure to call for a bailout, which would likely
trigger ECB purchases of Spanish debt.