Bank Chief Warns Greece on Rescue Deal
The head of Germany's central bank is warning that there would be no basis for further financial aid to Greece if the country backs off agreements with international creditors.
Bank chief Jens Weidmann was quoted in a Germain daily today as saying, "If Athens doesn't stand by its word, that is a democratic decision -- but that means the basis for further financial aid falls away."
Weidmann's comments come as Greek politicians, divided over the value of austerity and reform measures that creditors demanded in exchange for rescue loans, flounder in efforts to form a new government.
Weidman says that if Greece ended up leaving the euro the consequences would be more serious for Greece than for the rest of the Eurozone.
(Copyright 2012 by The Associated Press. All Rights Reserved.)