15:08 | 11/07/2015 Global Economy
The European Central Bank is ready to use all means to prevent financial and economic consequences of the Greek crisis.
European Central Bank Governing Council Member Ignazio Visco. (Photo: Bloomberg)
ECB Governing Council Member Ignazio Visco said on Wednesday that a negotiation between Greece and its international creditors is not absolutely guaranteed following a round of talks in Brussels on Tuesday.
He said ECB could not continue to extend credit to Greek banks if there is no progress on a reform plan.
Visco said that if Greece has to leave the Eurozone, the direct impact on the region will be negligible.
The same day, the Greek Ministry of Finance also sent a letter to the permanent bailout fund of the Eurozone, pledging to implement Greece’s commitments on tax and pension reform as creditors have requested in exchange for a new bailout.
Greece says it will begin tax and pension reform next week, if it received a 3-year bailout from the European Stability Mechanism (ESM)./.