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-----Original Message----- From: MeLinda MeLisa <[email protected]> Sender: [email protected] Date: Tue, 26 Apr 2011 18:24:43 To: <[email protected]> Reply-To: [email protected] Subject: [StockForex] ECB Stark: Euro-Zone Restructuring Could Be Worse Than Lehman ECB Stark: Euro-Zone Restructuring Could Be Worse Than Lehman www.MarketCall.net -- April 26, 2011 05:46 ET (09:46 GMT) FRANKFURT (Euro Zone) -- A debt restructuring for euro-zone members could result in a new banking crisis and would fail to address budget and structural problems in individual countries, European Central Bank executive board member Juergen Stark said in an interview with German TV station ZDF. "In a worst-case scenario, a debt restructuring of a euro zone member would place the Lehman Brothers insolvency in the shadows," Stark said in the interview, which was broadcast over the weekend. He said the only way for highly indebted member states to address their financial burdens is to stick to fiscal reform measures and pay back their bailouts. "There's no pain-free way." Stark said countries that chose to restructure their debt would be cut off from capital markets and foreign financing for an indeterminable period in the future. He added that some euro-zone members had "strongly neglected" fiscal reform duties, which they were repeatedly reminded of by the European Central Bank. Website: www.heute.de
