Marion Draghi said, Greece has to come up with an acceptable plan to gain more financing from their European counterparts.
The President of European Central Bank also warned EU countries that Euro was better equipped to deal with the Greek crisis now, but it will be difficult if situation deteriorated. The EU Central Bank President also asked for a continuous dialog between Greece and the other European countries to come to a solution. He also asked the Greek Government to put forward a plan which will guarantee fairness, economic growth, fiscal constancy and financial stability. He also mention that, Greece has to take the initiative, so that their plan is approved by the EU countries.
When asked about the risks of not reaching a deal between Greece and its debtors, Draghi said, “We have enough instruments at this point in time. Which although they have been designed for other purposes would certainly be used at a crisis time if needed.” Economists are pointing at ECB`s outright ‘Monetary Transactions and Quantitative Easing’ as the two tools ECB wants to use to solve the Greek crisis. ECB launched its Quantitative Easing program in January 2104. Draghi said, “We are better equipped than we were in 2012, 2011 and 2010.
Having said that, we are certainly entering into uncharted waters if the crisis were to precipitate, and it is very premature to make any speculation about it.”
ECB president was talking to journalists in Washington regarding amid rumor that Greece is running into the risk of debt default and may make a possible exit from the Euro. On Friday U.S.A. Treasury Secretary Jack Lew warned that the European and Global economy will fall into deeper crisis if the Greek crisis is not solved. He also asked the Greek government to come up with a detailed reform plan to secure more financing. Mr. Lew also said that the financial exposure to Greece had changed since 2012 and the world economy will be in a dipper crisis if there is a default.
EU debtors are showing frustration in recent times over Greece`s handling of debt and their attempts to convince their counterparts to get out of that financial woes. European Commissioner for Economic and Financial Affairs, Pierre Moscovici are in talk with the Eurozone Finance Minister to come up with a new set of Economic reforms for Greece, which they have to agree in order to solve their debt problem.
The Eurozone leaders are asking Greece to come up with a set of reforms as soon as possible, so that they can receive the €7.2 billion loan from their Eurozone partners, which they need in order to solve their debt problem. According to economists, without this funding Greece will run out of money and default either to IMF in June or to the ECB later in the summer, when large number of bonds held by the ECB matures.
In a statement the Greek Finance Minister Yanis Varoufakis said, Greece is willing to negotiate and give ground but he said, “We are going to compromise, compromise, and compromise without being compromised.”
