[Reuters] IMF's Lagarde: public sector may need to take part in Greek restructuring
PARIS, Jan 25 (Reuters) - Greece's public sector
creditors may need to participate in a restructuring of its debt
if a haircut negotiated with private sector bondholders is not
enough to make Athens' debt sustainable, IMF Managing Director
Christine Lagarde said.
"The balance between the participation of the private and
the public sector is a concerning question," Lagarde told
journalists in Paris on Wednesday.
"If the level of Greek debt held by the private sector is
not sufficiently renegotiated, then public sector holders of
Greek debt should also participate in the efforts," she said.
Lagarde said that reform efforts by European countries such
as boosting a firewall to stem contagion from its debt crisis
were crucial for the health of the world economy, but other
countries also needed to make efforts.
"The world economy is on a narrow path with little margin
for manoeuvre," she said. "America's debt and deficit - the lack
of a medium-term plan to reduce it - that is a real problem. The
situation is comparable in Japan."
She urged fast-growing emerging countries with current
account surpluses, such as China, to take steps to boost their
internal demand.
(Reporting By Daniel Flynn; Editing by Catherine Evans)
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Keywords: EUROZONE LAGARDE/PUBLIC
