ECONOMY

Greece likely to reach deal with creditors, says BoE policymaker

Greece is likely to reach a deal with its creditors and avoid leaving the eurozone, a Bank of England policymaker said on Tuesday.

“My expectation is that Greece and the eurozone members and the IMF will work together for an agreement,” Donald Kohn, a member of the Bank of England’s Financial Policy Committee, told Britain’s parliament.

“We have heard some language in the last day or two that suggests a little bit of progress, a little bit of give.”

Nevertheless, in such a tense situation, there is a risk of “accidents” but the exposure of Britain’s financial system to Greece is “probably very small”, Kohn said.

Kohn and Martin Taylor, another FPC member, were being quizzed by the parliament’s Treasury Select Committee on their reappointment to another term on the BoE’s risk watchdog.

[Reuters]