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Grexit "manageable": ECB policymaker

Monday, August 20, 2012 - 01:32

Aug. 20 - The prospect of a Greek exit from the euro has re-emerged with one ECB policymaker saying it would be ''manageable'' though he would prefer they stayed in. Joel Flynn reports.

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Greek muslims celebrate the end of Ramadan. But the country's economic fast shows no signs of letting up. Greece had to pay back 3.8 billion euros to the ECB on Monday -- it raised the cash in short-term markets last week. But they borrowed the money in a way which did nothing to reduce Greece's total debt burden. Later this week Prime Minister Antonis Samaras will meet euro zone's leaders to discuss the next 130 billion euro bailout. He's expected to ask for an extra two years to pay it back to appease his coalition partners. But Germany may not be willing to accept that, leaving Samaras in a predicament. Fiona Cincotta is from City Index. (SOUNDBITE) City Index Market Analyst, Fiona Cincotta, saying (English): "What we do need to bear in mind is this obviously is quite an important part of the Greek coalition. This is one of the key promises behind it, so there's going to be a lot of political tension here, and what's going to be interesting is seeing how the markets actually react to this. We've had a fairly quiet week last week; this is perhaps going to be the catalyst they're looking for." The talk has revived the prospect of Greece being forced to leave the euro zone. ECB policymaker Joerg Asmussen has reportedly said a Greek exit would be "manageable". But Germany has insisted that Greece would only leave if it refused to fulfil its reform targets. Greece's leaders will have to contain their own celebrations for some time yet. Joel Flynn, Reuters

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Grexit "manageable": ECB policymaker

Monday, August 20, 2012 - 01:32