“I do not think that we should recommend Greece to exit the eurozone,” he said on Thursday on the radio Žinių Radijas.
Butkevičius recommends that Greece continue to cut budget spending, put in place public sector reforms and stick to austerity measures. He rules out the possibility of writing off Greek debts because this step could create new financial upheaval, he said.
“It goes without saying that current debts could hardly be written off because then some negative consequences would be seen in commercial banks which bought up securities, circulating in the secondary market. In fact, it should be analysed how to refinance some of the loans in order to minimise their interest and cut debt service costs to the budget,” he said.
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