Greek euro exit would be catastrophe: EFSF head

Reuters
6:40 a.m. EDT, May 7, 2012
BERLIN (Reuters) – A Greek exit from the euro zone would be catastrophic not just for Greece, the head of the euro zone’s temporary rescue fund said on Monday, a day after pro-bailout ruling parties lost their majority in parliament in Athens.
If Greece exited the euro zone that would “of course have a huge impact not just for other program countries, not just for the banks, but also for Greece itself,” Regling said, adding Greece’s public creditors would also suffer. “It would be a catastrophe for Greece.”
Regling also said it was completely out of the question that the European Stability Mechanism (ESM) would directly recapitalize banks, a proposal by some policymakers to help Spanish banks.
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