ECONOMY

There is life after debt, OECD chief tells Greece

Greece will overcome its fiscal problems and find that ?there?s life after debt,? said Angel Gurria, secretary general of the Paris-based Organization for Economic Cooperation and Development.

Gurria, a former Mexican finance minister, said Greece faces problems similar to those once tackled by his own nation.

?Mexico never defaulted, but they negotiated with their own creditors a voluntary arrangement,? Gurria said today in an interview with Bloomberg Television in Rome. ?After a few years, we moved along to other, more definitive solutions. In the end, I can tell you: there?s life after debt.?

One year after the 110 billion-euro ($160 billion) bailout that aimed to end the region?s debt crisis, Greece is in danger of defaulting without a new rescue package. Some European countries, led by Germany, have pushed for private investors to shoulder some of the burden of a new aid plan and are seeking commitments from banks and insurers to roll over 30 billion euros of bonds into longer-maturity debt to ease the country?s financing needs.

The final solution for the Greek debt crisis will have to involve private creditors, Gurria said.

?Every day there is a new plan, there are so many plans,? he said. ?We?re not very well coordinated in explaining and speaking. We should speak with a sole voice. I think we are still not there. I think the ultimate solution will have to involve creditors.?

[Bloomberg]