Bloomberg News

Bank of Spain’s Malo Backs ECB Stance on Greek Restructuring

June 01, 2011

June 1 (Bloomberg) -- Bank of Spain Chief Economist Jose Luis Malo de Molina said Greece should stick to its debt plan, as he backed the European Central Bank’s opposition to a restructuring of that nation’s loans.

Asked about the possibility of getting lenders to roll over expiring Greek bonds in an adaptation of what was done in Eastern Europe two years ago, or a soft restructuring, Malo de Molina said Greece already has measures in place to tackle its surging debt.

“Don’t expect from me a position different to that of the ECB, which has always been in favor of a solution in Greece on the lines already established by the euro group,” Malo de Molina said in an interview at a real-estate conference in Madrid today.

Saddled with Europe’s heaviest debt load, Greece is seeking additional loans on top of last year’s 110 billion-euro ($158 billion) European-Union led bailout. Olli Rehn, the EU’s economic and monetary affairs commissioner, said in an interview yesterday that the Vienna Initiative for Eastern Europe has “mostly given us positive lessons,” while so-called re- profiling is being considered.

--Editors: Craig Stirling, Fergal O’Brien

To contact the reporter on this story: Emma Ross-Thomas in Madrid at erossthomas@bloomberg.net

To contact the editors responsible for this story: Craig Stirling at cstirling1@bloomberg.net;


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