Zero’ chance Greece to ditch euro: Papademos
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    “There is zero chance, for the simple reason it entails costs that are  far beyond any possible benefit,” he said. “For Greece, the impact would  be much worse than they are facing now. For those who think properly  through the options, it is not an option.”                              
                                 The article that set off the talk on Friday — from the German  publication Spiegel — itself pointed out the immediate problems leaving  the euro                                                   
  /quotes/comstock/21o!x:seurusd                        EURUSD                         -1.5543%                                                     would entail. The story cited a German finance-ministry document  calculating that the new drachma would lose as much as 50% of its value,  sending Greece's national deficit to 200% of gross domestic product.                              
                                 The Greek government aggressively countered that article, calling it  “not only completely untrue but also written with incomprehensible  flippancy.”             
  Read more on Greek finance minister's comments.                                   
                                 Papademos himself paused when considering why some in the German  government evidently suggested the story. “One can speculate, but most  of the story focuses on how costly it would be for Europe. Maybe in  order to convey message that people who have it on their mind should  think twice, it may not be desirable or attractive for [Greece’s  euro-zone] partners,” he said.                              
                                 Papademos, now a visiting professor at the Harvard Kennedy School, said  even a restructuring of the debt, which is widely speculated in  financial markets, can be avoided — suggesting that privatization could  put Greece on a different financial footing. The Greek government is due  to soon announce its plans.                              
                                                       “It’s not so much companies, because the total amount is not huge, but  it could involve ports and airports. There could be long-term leases of  public land and other real estate, which according to official records  is quite extensive,” he added. “If things are done correctly, then there  could be a big change in sentiment in a year and a half, which may not  make it impossible to come to market.                              
                                 “At present, it seems very difficult,” Papademos continued. “It is true  that over the past few months or weeks, spreads have gone through the  roof.” On Friday, the cost of insuring $10 million of Greek debt against  default for five years cost about $1.4 million annually, more than  double the cost of even euro-zone straggler Portugal.                              
                                 Achieving a restructuring will be very difficult, he said.             
  See earlier story on Greek restructuring options.                                   
                                 “One will have to see in practice how that can be achieved in a way that  also has financial benefits,” he commented. “In principle, it can be  done in a ‘market friendly’ way that does not entail loss or perhaps  some losses that are not problematic.” 
   
                                   Steve Goldstein is MarketWatch's Washington bureau chief.
?Zero? chance Greece to ditch euro: Papademos - MarketWatch