Debt restructuring is not an option for eurozone countries that have accepted the recent bailouts from the International Monetary Fund and the European Union, a member of the European Central Bank governing council has said.
According to Reuters, Christian Noyer said in a speech in Helsinki on Sunday that “solutions akin to debt restructuring are not an option” and countries should make an effort to implement spending cuts.
His remarks come ahead of a final decision by the IMF, the EU and the ECB on the next stage of Greece’s rescue. The troika decided on Friday that Greece would receive the next tranche of its bailout package by the end of the month.
Greece accepted a bailout package worth £98.1bn last year on the condition it would cut its government spending. Of this, £10.6bn was due to be paid in June, but the payment has been subject to a month-long review.
According to Bloomberg, under the original deal the government needed to sell £24bn in bonds by next year, at a time when Greek yields are twice what they were when the bailout was accepted.
Thousands of people have protested in Athens following news of further austerity measures.