Austrian Banks say Greek bailout needs coordination
FRANKFURT, June 21 |
FRANKFURT, June 21 (Reuters) - Austrian Bankers said they remain skeptical about the viability of investor participation in a bailout of Greece due to a lack of coordination among creditors.
Before Austrian banks can decide on a private sector participation of a Greek bailout, some proposals are needed, said Willibald Cernko, new president of Austria's VOEBB banking association.
"We are missing a common vision," Cernko, who is also an executive at Unicredit (CRDI.MI) added.
The VOEBB said there is no formal coordination among private sector investors in Greek debt, adding that the diverging interests of the various creditors and the sheer number of creditors make it difficult to replicate a so-called Vienna Initiative. Germany sees a plan -- based on the 2009 Vienna Initiative by banks to voluntarily maintain exposures in Eastern Europe at the height of the financial crisis -- as a good foundation for a Greek deal.
"You cannot compare the situation back then with the crisis of a state, it cannot be applied to Greece," Cernko said.
Austria's Erste Bank (ERST.VI) and Raiffeisen RIBH.VI are among the member institutes represented by the VOEBB.
Most economists are highly skeptical that Greece can ever repay its debt mountain, which has reached 340 billion euros ($480 billion) or 150 percent of the country's annual economic output.
Any Greek debt rollover would be complex and controversial, financially and legally, and key details have not been worked out. Euro zone finance ministers aim to find a solution, a temporary one at least, at the Luxembourg meeting. [ID:nL3E7HL0BG] (Reporting by Angelika Gruber; writing by Edward Taylor)
- Tweet this
- Share this
- Digg this