Greece probably won’t repay all of its loans to the Dutch state, the former head of the Netherlands’ central bank has said in the Netherlands’ main financial newspaper.
Nout Wellink’s remarks were published Monday in Het Financieele Dagblad.
Most observers believe Greece won’t be able to cut its national debt to sustainable levels even with a default of 50 percent on privately held bonds, leaving little hope the country can repay government-held debt in full. But Wellink’s remark is at odds with standing claims by the Dutch government that it will receive repayment in full of all loans to Greece.
Wellink ran the Netherlands’ central bank until the end of July. He was then an advocate of the country’s participation in Greece bailouts. [AP]