NEWS

Lew urges Europe to compromise with Greece on debt overhaul

lew-urges-europe-to-compromise-with-greece-on-debt-overhaul

US Treasury Secretary Jacob J. Lew called on Greece and its European creditors to reach an agreement that keeps the euro area intact, saying a long-term solution must include restructuring of the cash-strapped country’s debt.

“I continue to believe that it is in the best interest of all parties to find a resolution,” Lew said Wednesday at a Brookings Institution event in Washington. “Greece needs a path towards a sustainable debt path.”

The European Union set a Sunday deadline to reach a deal with Greece on a rescue in exchange for austerity measures and economic reforms, while the country formally requested a new three-year bailout and promised to pay back its debts.

The sides need to build trust, he said. “It’s going to be a lot to do in a short period of time,” Lew said.

Lew said he doesn’t think the Greek crisis or China’s stock market slump pose an immediate risk to the U.S. economy.

[Bloomberg]