Greek Euro Exit Would be Catastrophe: EFSF Head

A Greek exit from the euro zone would be catastrophic not just for Greece, the head of the euro zone’s temporary rescue fund said on Monday, a day after pro-bailout ruling parties lost their majority in parliament in Athens.
If Greece exited the euro zone that would “of course have a huge impact not just for other program countries, not just for the banks, but also for Greece itself,” Regling said, adding Greece’s public creditors would also suffer. “It would be a catastrophe for Greece.”
Regling also said it was completely out of the question that the European Stability Mechanism (ESM) would directly recapitalize banks, a proposal by some policymakers to help Spanish banks.
(source: Reuters)