FT editor betting on debt restructure
Published 06/05/2011 | 05:00
THE rescheduling of debt repayments by a euro member country will have to be countenanced by the EU, according to the editor of the 'Financial Times'.
Addressing the IBEC/Accenture annual lecture last night, Lionel Barber (above) said rescheduling had to be considered to stabilise the eurozone.
"It is almost certain the EU will have to countenance the rescheduling of sovereign debt to finally resolve the crisis. The question is only one of timing," he said.
Mr Barber also questioned the motives behind the implementation of the bank guarantee, which he called "baffling".
"Was it a failure of nerve? Was it ignorance? Or were there other, less obvious reasons, based perhaps on the relationship between the private sector and certain developers with the political class?" he added.