The European Central Bank (ECB) Vice President Vitor Constancio addressing the Greek debt crisis said that the bank could accept private sector involvement along the lines of the “Vienna Initiative”. Under the “Vienna Initiative” for central and Eastern Europe, international lenders agreed in 2009 to boost credit to the region and the main commercial banks in turn committed to maintain exposure and roll over credit lines. He also added that they are not against all types of Private sector involvement but they are not willing to involve more. ECB President Jean-Claude Trichet last week endorsed privatisation as a way to help Greece out of its debt crisis, saying he was sometimes surprised by the narrow view of the debate on Greece. This year’s European bank stress tests present a more severe scenario than last year. According to Constancio under a rating event, rating agencies would classify Greek debt at “selective default”. Constancio dismissed the idea of the country defaulting in the case of U.S.A.




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ECB’s Constancio open to Vienna-style Greek deal