Aid could fall away, warns Bundesbank chief

The head of Germany’s central bank is warning that there would be no basis for further financial aid to Greece if the country backs off agreements with international creditors.

Bundesbank chief Jens Weidmann was quoted on Saturday as telling the daily Sueddeutsche Zeitung: «If Athens doesn’t stand by its word, that is a democratic decision ? but that means the basis for further financial aid falls away.”

Weidmann’s comments come as Greek politicians, divided over the value of austerity and reform measures that creditors demanded in exchange for rescue loans, flounder in efforts to form a new government.

Weidmann says that if Greece ended up leaving the euro «the consequences would be more serious for Greece would be more serious than for the rest of the eurozone.”