UPDATE 2-Greece only has days to reach deal with creditors: Noyer

Mon Jun 8, 2015 2:44pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

(Adds remarks about bond yield volatility and U.S.-euro exchange rate)

By Randall Palmer and Allison Lampert

MONTREAL, June 8 (Reuters) - Greece has only "a matter of days" to reach a deal with its international creditors, European Central Bank governing council member Christian Noyer said on Monday, adding that a Greek exit from the euro zone would not cause a problem for the currency bloc.

Noyer, who is also governor of the Bank of France, said it was "extremely urgent" for Athens to reach a deal and that realistically it had only "a matter of days" since any late-June agreement would need to be approved by European legislatures.

Speaking to reporters at an economic conference in Montreal, Noyer also said while the European economy was recovering as the European Central Bank had hoped, it was too early to declare victory and change monetary policy.

His remarks came as Athens proclaimed a new willingness to compromise with its international creditors to try to come to a deal that would keep it within the euro zone.

Noyer said the pressures on the bloc and peripheral countries from a possible "Grexit" were not the same as several years ago. He added that contagion should not be feared because powerful firewalls had been put in place, and peripheral countries had fixed their fiscal positions, adopted structural reforms and had high growth rates.

"The problem of Greece is a problem for Greece itself," he said, adding that he was anxious for the country. Greece's problem is not one of debt but of restarting its economy, and that requires reforms and not destroying those reforms already in place, Noyer said.

"Frankly speaking, we have not seen a convincing bunch of proposals that ... would be able to convincingly restart the economy," he said.   Continued...