Canada says Greek crisis worse, sees reordered debt

Mon Oct 3, 2011 3:48pm EDT
 
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By Cameron French

WHITBY, Ontario (Reuters) - The Greek debt crisis is getting worse rather than better, Canadian Finance Minister Jim Flaherty said on Monday as he urged European leaders to take clear and decisive action to avoid a banking meltdown.

He also said he did not see a resolution without Greece's debt being "reordered".

"Ultimately the whole world would be affected if there were a bank meltdown, a credit crunch, coming out of Europe. So this is a serious situation and it's been serious for quite some time. It's getting worse because of the continued uncertainty," Flaherty told Sun TV.

"It is quite frustrating and that's why we're trying to impress on them (European leaders) that these are extraordinary times. You can't follow normal processes."

In earlier remarks at a news conference, he urged European ministers meeting on Monday to be decisive and remove uncertainty on Europe.

"We want them to take the bull by the horns here, deal with the issues, be clear about what they're doing and bring it to a conclusion," the Conservative minister said.

Greece's admission that it would miss its deficit target this year despite harsh new austerity measures sent stock markets reeling on Monday and raised new doubts over a planned second international bailout.

"REORDERING" GREEK DEBT   Continued...

 
<p>Canada's Finance Minister Jim Flaherty speaks during Question Period in the House of Commons on Parliament Hill in Ottawa September 26, 2011. REUTERS/Chris Wattie</p>