Christine Lagarde Raises Possibility of Greece’s Orderly Euro Exit

The head of the International Monetary Fund on Tuesday raised the possibility that Greece could leave the eurozone in an orderly fashion.
“If the country’s budgetary commitments are not honored, there are appropriate revisions to do, which means either supplementary financing and additional time or mechanisms for an exit, which in this case must be an orderly exit,” Christine Lagarde said in an interview with France 24.
“It is something that would be extremely expensive and would pose great risks but it is part of options that we must technically consider,” she said.
She spoke as political leaders in Greece said the country was facing new elections as they had failed to agree on a governing coalition in crunch talks following May 6 inconclusive polls.
Observers say that new elections in Greece will likely hand more parliament seats to anti-austerity parties and could push Greece out of the eurozone.

“They have undertaken important reforms, they have made a certain number of sacrifices,” Lagarde said. “To throw all of this away because of profound political disagreements, it’s really a shame for the Greek people.”
“I hope that a compromise solution will be found that will allow progress within the respects of a programme that of course we will be open to examining on details, not on the fundamentals,” she said.
“On the fundamentals, unfortunately, there aren’t 36 solutions.”
“This is something for Greeks and eurozone partners to decide together.”
(source: AFP)