Bank of Latvia President: Greece voted itself out of eurozone

Take note – story published 8 years ago

Ilmārs Rimšēvičs, the President of the Bank of Latvia, thinks that the eurozone could, in the long term, benefit from a Greek exit from the currency. In interviews to Latvian Television and Latvian Radio, he also assured that the euro is very stable.

He said that, in essence, Greece has voted itself out of the eurozone. The most realistic scenario is a Greek exit from the currency, perhaps not straightaway but in the long term. 

"The current circumstances require someone to open up their wallet, and no one is ready to put 30-50 bln euro on the table," said Rimšēvičs.

Although there is a chance that a country or a group of countries could pool the money, as long as that money is nowhere to be found and there is little progress in talks, a Greek exit from the eurozone is the most realistic way in which things will play out.

He said that the eurozone could benefit in the long term if Grexit happened, and Latvia doesn't have to worry about that scenario.

He also explained that the European Central Bank's decision to continue supporting Greece on the same level also requires bigger securities for the loan. 

"It means that the moment has arrived when Greece has to start to think how they'll be dealing with this situation," said Rimšēvičs.

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