9 JUN 2011
By Macer Hall | Daily Express
BILLIONS of pounds of British taxpayers’ cash could be poured into yet another euro bailout after a senior EU official admitted Greece is on the brink of bankruptcy.
“We are standing before the real risk of the first full-blown bankruptcy inside the euro zone,” said a letter written by German finance minister Wolfgang Schaeuble to the European Central Bank.
It was leaked to German newspapers.
His letter intensified speculation that Britain could be pressed to contribute up to £8billion to an emergency rescue package for Greece to stop the euro collapsing.
On June 20, EU finance chiefs are expected to agree to a £55billion bailout on top of the £100billion pledged last year.Mr Schaeuble’s comments were seen last night as an admission that the euro-zone crisis is spiralling out of control.
He called on the Central Bank to give the Greeks more time to tackle their £280billion sovereign debt crisis.
He is proposing that private creditors should be made to wait seven extra years before receiving repayment of outstanding loans to Greece. The European Central Bank, which has invested heavily in Greek bonds in an attempt to stabilise the euro- zone, is opposed to restructuring the Greek debt.
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