Economy

By Dimitra Manifava

Greek banks are solvent and could withstand some stress but would run into trouble if the Greek government were to default, European Central Bank Governing Council member Klaas Knot told the Dutch parliament on Tuesday.

Imports of energy and lifesaving medicines top the list of products in jeopardy if Greece defaults on its debt and moves closer to exiting the eurozone.

The threat to vital supplies is increasingly exercising policymakers, companies and traders as an impasse in negotiations between Athens and international creditors provokes alarm in financial markets.

Membership of the eurozone is irreversible and leaving the single currency is not foreseen in the European Union?s treaty, a top European Central Bank official said on Tuesday.

The European Court of Justice has delivered a ruling strengthening the European Central Bank's hand in intervening in financial markets - backing that could come in handy amid fears Greece will default on its debts and possibly leave the 19-country euro currency union.

By Catherine Bosley

Former European Central Bank President Jean- Claude Trichet said Greece?s best option is to remain in the euro area because the Greek public would first to bear the brunt of an exit.

The National Gas Transmission Company, Transgaz, will launch a bond issue on minimum 5 years, worth maximum 500 million lei, at maximum 4.5pct fixed interest rate, according to a report submitted on Tuesday to the Bucharest Stock Exchange (BVB).

By Sumanta Dey

There is an even chance of Greece defaulting on its debt payments, according to economists polled by Reuters, although the probability of it leaving the eurozone is still only one-in-three.

The Government will continue restructuring the state-owned companies and reviewing its portfolio, to decide which of them could be listed on the stock exchange, Treasury head Stefan Nanu said in a conference organized by the Bucharest Stock Exchange (BVB) on Tuesday.

The eurozone's body for dealing with failing banks said on Tuesday it was in close contact with Greek regulators as the country's banks face tough times.

"Greek banks are living in a challenging economic environment," Elke Koenig, chairman of the Single Resolution Board (RRB), told the European Parliament.