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Thursday, May 19, 2011

The European Central Bank strongly oppose Greece debt restructuring

the European Central Bank (ECB) on the Greece debt restructuring proposal was strongly opposed, which deepened with other EU officials in dealing with the eurozone debt crisis differences on the issue.

members of the Executive Committee of the European Central Bank's stark (Juergen Stark) pointed out that if Greece debt restructuring, provided to the European Central Bank will cut Greece emergency credit support in the banking sector.

This is a strong counter to other EU officials, following senior officials that does not rule out on Greece possibilities of voluntary debt moratorium.

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analysis persons said , Cut off Greece Bank of emergency credit access will most likely lead to bank failures, because many Greece banks rely on emergency loan to maintain daily operations of the European Central Bank.

stark on Wednesday (18th) to visit Greece, said the sovereign debt restructuring would undermine the Greece effectiveness of government bonds, which will be to continue to provide liquidity to become impossible. The European Central Bank spokesman said Thursday on the confirmation.

prior to that, Euro Group President Juncker (Jean-Claude Juncker) said on Tuesday did not rule out on Greece debt "soft restructuring the possibility of", that is in Greece such as the sale of Government property taken by the Government but circumstances still need more help.

France's Finance Minister Christine Lagarde (Christine Lagarde) says Greece debt restructuring "off the table".