Canada Finance Minister: Real Danger Of Global Contagion From Europe
OTTAWA (MNI) - Canadian Finance Minister Jim Flaherty warned Monday that "there is a real danger of contagion stemming from the situation in Europe," and urged a quick resolution to the Greek crisis.
Flaherty told the annual conference of the International Insurance Society, in Toronto, that he had been in conversation with European colleagues about the dangers in a possible Greek default, and had pressed for a quick resolution of the issue.
There were G7 conference calls among finance ministers and central bankers Sunday and Monday, Flaherty later said in a brief meeting with reporters.
"The key, I think is, and our message is, that delay is not desirable, that it's important to come to a resolution to avoid the danger of contagion arising out of the situation in Greece."
"So there is a sense on our part certainly that it's important that the situation be dealt with as expeditiously as possible," he said.
A U.S. Treasury Department spokeswoman confirmed that the G7 call had taken place, but did not provide additional information.
"There is substantial concern" in the G7, Flaherty said, speaking after European Union finance ministers had given Greece two weeks in which to approve tighter austerity measures in order to receive a further 12 billion euros in emergency loans.
"We know that delay causes more difficulties, makes the situation more expensive, and creates more strife at the end of the day."
Canadian banks and insurers do not have great exposure to Greek debt but Flaherty told the conference that Canada could be affected by the impact on the world generally of the financial turmoil in Europe.
To reporters, he said: "I expect that it's going to be resolved. They're working hard in Europe to accomplish that."
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