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Greek PM: Restructuring Could Bring Banks’ Collapse

Restructuring Greece’ss debt would probably cause the collapse of Greek banks, Prime Minister George Papandreou was quoted on Wednesday as saying, Reuters reported. “A restructuring would probably lead to the collapse of Greek banks,” Papandreou said in an interview to  German Stern weekly magazine. “Even German banks could collapse and an avalance of speculative attacks against othe rEuropean countries could occure” he stressed, adding “We in Europe, we cannot pay this price.

In refereance to the EU leaders’ summit that begins today in Brussels, Greek prime minister said: “We will pay back every cent and thus with high interest rate.”

He defended the bailout loans to Greece and said that “the German taxpayer will receive more than what he lent.”

George Papandreou also complained about the “Terror of the Markets” (Read full interview in German STERN  HERE )

Greek banks to get €30 bn aid package

Meanwhile the aid amounting 30 billion euros that will be given to Greek banks in form of state guarantees triggered reactions even from government ministers. National Defense Minister Evaggelos Venizelos said that the funding of banks has been more than 100 billion euros in the last years and asked measures so that the € 30 billion package will return in the market.

Minister of Development Michalis Chryssochoidis stressed “it can’t be that enterprises close down due to lack of cash flow”, while  Citizens’ Protection Minister Christos Papoutsis demanded that “the banks must support the real economy and the small and medium enterprises”.

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