National Australia Bank chief executive Cameron Clyne says the Greek debt crisis buffeting Europe remains a worry, but he is confident a solution to the problem can be found.
Mr Clyne also said the jury was out over whether the crisis could lead to a full-blown financial crisis.
The question is whether this is a business as usual crisis or a real crisis, Mr Clyne told a CEDA lunch in Melbourne.
Weve obviously been through a very tumultuous time with the GFC, subsequent to that theres been blips along the way as weve dealt with various issues, he said. Its difficult to determine if this is one of them.
Investors in Europe remain hopeful a solution will be found to Greeces debt problems after France said French banks had outlined an agreement to roll over holdings of maturing Greek bonds, while German bankers also voiced interest in this model.
The Greek parliament is currently debating a proposed package of cost cuts and asset sales to qualify for the next tranche of the EU-funded bailout program.
If it did not get the next tranche, analysts said Greece could default, triggering a Europe-wide crisis and potential credit market freeze similar to the Lehman collapse in 2008.
Mr Clyne said it was widely acknowledged that Greece itself did not represent a significant threat to the global economy. However, it was the banking counterparty exposure and the confidence issues that flow from that.
Were optimistic that a solution can be found because everyone understands the implications of not finding a solution. But having said that, the situation in Europe is quite fragile.”
ejohnston@theage.com.au
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