ECONOMY

Greece will eventually need another haircut, Bundesbank chief says

Debt-wracked Greece will eventually need another “haircut,” the head of Germany’s central bank – the Bundesbank – said Friday, adding however that a write-off is not in the cards at the moment.

“A debt haircut would not solve Greece’s problems,” Jens Weidmann told a gathering of business representatives in Berlin on Friday.

However, he added, “it will be necessary in the end to regain access to capital markets.”

Offering Greece a haircut right at this moment, Weidmann, who is also a governing council member of the European Central Bank, told the meeting, would ease pressure on the country and weaken its reform drive.