Klaus Regling, chief executive officer of the European Financial Stability Facility, said an exit of Greece from the European monetary union would be the costliest option, according to an interview in Die Presse newspaper.
The “worst-case scenario” of Greece leaving the euro “would be the most expensive solution for all parties involved,” Regling told the Vienna-based paper. “That’s why the governments of the euro area are doing everything for Greece to stay.”
The EFSF chief cited a UBS AG study that estimated the cost of an exit at 100 billion euros ($129 billion) in the first year. “Possibly this could be considerably higher, as one can’t anticipate the consequences,” he said.
Regling reiterated that the EFSF had enough fire power to cover bailouts of Spain and Italy, adding that he “didn’t expect that these countries will actually need funds” from the facility, according to the report.
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