Cyprus Mail
Greece World

IMF says Greece spillovers limited, Schaeuble wants to see action before support

Greece is a small part of the world economy, and its possible exit from the euro zone should have limited impact on the rest of the world, the IMF’s chief economist said on Thursday, though he warned similar crises could happen in other countries.

Greece is racing to find a last-minute third bailout from its IMF and European Union creditors to avoid bankruptcy and exit from the euro zone.

“In a world in which there is high debt to start, we have to be ready for episodes like this,” said Olivier Blanchard, the chief economist at the International Monetary Fund.

Meanwhile Germany Finance Minister Wolfgang Schaeuble said on Thursday that Greece needs to deliver on concrete prior action to gain European financial support, adding that it was difficult to see such steps before Sunday.

“A monetary union constructed like ours is nothing but an invitation for somebody that doesn’t stick to the rules and that’s called moral hazard,” Schaeuble told a conference.

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