Fears grow over Greece exit after ECB says Europe is ‘equipped’ for fallout

Fears of a Greek exit from the EU have grown after the head of the European Central Bank said the currency bloc has “buffers” in place to avoid a chain reaction meltdown were the country to be forced out.

The statements came from the ECB after a series of meetings with big players from the international financial community.

They say their “buffers” would be sufficient for keeping the eurozone afloat were the country to crash out by defaulting on their debts to the International Monetary Fund.Speaking at the IMF’s spring meetings, ECB President Mario Draghi made it clear the eurozone is no longer vulnerable to the chain-reaction experienced during earlier phases of the debt crisis.

But while the buffers are in place, they are not necessarily designed for the possibility of a Greek exit.Draghi said a default would still send the global economy into “uncharted waters” because the buffers were “designed for different circumstances”.

Full article: Fears grow over Greece exit after ECB says Europe is ‘equipped’ for fallout (The Independent)

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