As the clock runs down on a June 30 deadline for Greece to make payments owed to the IMF, the U.S. Treasury secretary says its potential exit from the euro would not only hurt Greece but poses a risk to other countries as well.
U.S. Treasury Secretary Jake Lew said that a possible Greek exit from the euro would have a devastating impact on the country’s citizens and that risks of potential consequences for other nations remains unclear.
European Union (EU) leaders and Greece’s creditors are making last-ditch efforts to avert a Greek exit from the joint euro- zone currency and unlock aid for the nation at risk of default.
“Within Greece, the consequence of a failure here would mean a terrible, terrible decline in their economic performance,” Lew said in an interview on “CNN’s Fareed Zakaria GPS” that will air Sunday. “They will bear the first brunt of a failure.”
The clock is running down on a June 30 deadline for Greece to make payments of about 1.5 billion euros ($1.7 billion) owed to the International Monetary Fund (IMF) and work out a new deal amid disagreements on pensions, sales tax and a deficit target.
Most Read Business Stories
- After rising all year, Seattle-area rents start to cool down. That probably won't last
- 12 tips to save money on your energy bills this winter
- People are quitting their jobs in record numbers. What will they do instead? | Jon Talton
- The best tech gifts that aren’t gadgets
- Can advertisers track online users if they use a VPN? | Q&A with Patrick Marshall
With its finances in tatters, it’s unclear how long Greece can hold out against the conditions attached to a fresh infusion of rescue loans.
“The reality is we see from day to day that there are impacts on other markets,” Lew said. “I don’t think anyone should want to find out.”