IMF officials working with SE Europe gov’ts for event of Greek default

The IMF is working with authorities in southeastern Europe to prepare for the event of a Greek default, Jorg Decressin, deputy director of the Fund’s Europe department, has told The Wall Street Journal.

“We are in a dialogue with all of these countries. We are talking wth them about the contingency plans they have, what measures they can take,” Decressin told WSJ.

Several Greek lenders are active in Bulgaria, Romania, Albania and Serbia.

According to the report, the IMF has requested local officials to make sure that subsidiaries of Greek banks have enough assets that they can exchange for emergency financing at their own central banks and that there are adequate deposit-insurance funds.

“It would be foolish for anyone in the policy world not to be worried at this stage,” Decressin said.

Eurozone finance ministers are meeting in Brussels on Monday to continue talks on a deal to release a portion of billions of bailout funds to Greece. Athens officials have said Greece will honor the 750 million euros to the IMF due on Tuesday. No breakthrough is expected at Monday’s talks, as many issues remain unresolved.

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