The prospect of “leaving the euro area is not necessarily a bluff,” Greek Finance Minister Gikas Hardouvelis said in an interview with Bloomberg TV.
“An accident could happen, and the whole idea is to avoid it,” he added.
The main challenge facing whichever government emerges from the January 25 vote, will be to close the stalled review of Greek progress in meeting the terms of its financial rescue by the euro area and International Monetary Fund (IMF), he said. If that government is led by SYRIZA, it would be “prudent” to reverse its stance and negotiate an extension to the bailout before the aid supporting Greece expires on February 28, Hardouvelis said.
The euro area, he said, has put defenses in place against a country leaving the single currency now shared by 19 members, meaning the prospect of exit can no longer be used as a bargaining chip in negotiations by any government.
Hardouvelis also said that tax-revenue collection has slowed as a result of the electoral uncertainty.
The Greek Finance Minister underlined that “breathing space” could come from further extending the duration of the loans, and taking advantage of liquidity conditions by transforming floating-rate loans to fixed rate, according to Bloomberg.
(source: ana-mpa)
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