US President Barack Obama warned Tuesday the unfolding Greek financial crisis could have a "significant effect" on European growth but said it would exert no "major shock" on the global system.
With cash-strapped Greece on the edge of default on its debt to the International Monetary Fund, Obama called the situation in the eurozone country one "of substantial concern."
"Obviously it's very painful for the Greek people and it can have a significant effect on growth rates in Europe," he said during a joint White House press conference with visiting Brazilian President Dilma Rousseff.
However, he added, "In layman's terms, for the American people, this is not something that we believe will have a major shock to the system."
Obama nevertheless said the continuing crisis, with Greece unable to come to a new agreement on bailout funds with its official creditors, would have an impact beyond Europe's borders.
"If Europe's not growing the way it needs to grow, that has an impact on us, it has an impact on Brazil. Those are major export markets and that can have a dampening effect on the entire world economy," he said.
He repeated the US call for European and Greek officials to continue to negotiate in hopes of reaching a deal that would help stabilize the country and prevent Athens from exiting the eurozone.
"Essentially what you have here is a country that has gone through some very difficult economic times, (that) needs to find a path towards growth and a path to say in the eurozone," he said.
He assured that US officials were in regular contact with European counterparts, and were working with the European Central Bank and other institutions to ensure the financial system continues to work smoothly.
Source: AFP
GMT 08:11 2018 Wednesday ,17 January
BlackRock chief calls on CEOsGMT 08:51 2018 Wednesday ,03 January
Banks 'reticent' to work with SudanGMT 08:36 2017 Sunday ,31 December
US tax reform to cut earnings by $5 bnGMT 18:42 2017 Thursday ,28 December
Al-Sukait Tackles Investors’ ContributionGMT 18:34 2017 Wednesday ,27 December
Shaath reveals opening date of Metro third lineGMT 09:52 2017 Tuesday ,12 December
Senate tax plan would boost revenue $1.8 tnGMT 08:42 2017 Friday ,08 December
Post-Brexit London 'won't fall apart'GMT 10:04 2017 Monday ,27 November
Brexit without EU trade deal 'not end of world'Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2023 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2023 ©