The Straits Times
Published on Oct 14, 2012

German finance minister says Greece will not default


SINGAPORE (REUTERS) - German Finance Minister Wolfgang Schaeuble said on Sunday that Greece would not default, but warned that if Athens did exit the eurozone it would be damaging not only for the zone as a whole but also Greece.

"I think, it will not happen that there will be a state bankrupt in Greece", MR Schaeuble said at a meeting with business leaders in Singapore.

"Greece has to take a lot of very serious reforms and this will harm. Everyone is trusting that the Greek government is doing what is necessary."

Greece is locked in talks with the European Union, European Central Bank and International Monetary Fund on a new set of spending cuts and reforms in exchange for the next tranche of loans saving the debt-crippled country from bankruptcy.