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Bundesbank head says Greece risking default

European Central Bank Governing Council member Jens Weidmann in an interview to be published Saturday said that Greece is risking default if it does not meet its obligations.

Weidmann, who also heads the German Bundesbank, told the German weekly Focus that although EMU governments were putting on a good face, it was getting increasingly hard to avoid a default.

"It seems as if the governments of the other states are of the impression that a solution can still be achieved," Weidmann said. "But we don't have much time anymore. It's getting close."

A Greek default would have devastating consequences for the Greek population, Weidmann added.

New aid from the European Central Bank would still not be the appropriate thing to do, Weidmann added.

"I am against increasing the emergency loans," he said in the interview.

Weidmann argued that Greece could continue to service its debts on its own in spite of its high public debt ration given that interest rates are low and maturities long.

Weidmann blamed the new Greek government for the renewed crisis, said, pointing out that the Greek economy was improving until autumn last year.