Mobius: Greek bailout makes no sense

clock

Franklin Templeton's Mark Mobius says letting Greece default on its debt would be the best way to ease the European fiscal crisis and calm contagion concerns.

Mobius, known as the ‘godfather of emerging markets', says Greece should consider restructuring its debt to pay 25 to 50 cents for every dollar owed, cutting its borrowing to a more sustainable level. Lending aid to Greece may drag down the European Union as other indebted nations seek a bailout in turn, he says. "A default will help to plug the leak," Mobius says in an interview with Bloomberg Television. "A bailout at this stage does not make sense to me. "The Greeks are rich. If you look at what happened during the Olympics, they raised $10bn (£6.6bn) and there are only 10 milli...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Economics

Higher household bills push UK inflation to 3.5%

Higher household bills push UK inflation to 3.5%

Up from 2.6%

Cristian Angeloni
clock 21 May 2025 • 2 min read
BoE chief economist Huw Pill warns cutting UK interest rates too quickly has 'upside risks'

BoE chief economist Huw Pill warns cutting UK interest rates too quickly has 'upside risks'

MPC voted five to four to cut rates

Patrick Brusnahan
clock 20 May 2025 • 2 min read
UK set for EU deal after 'breakthrough' -reports

UK set for EU deal after 'breakthrough' -reports

Third big deal following India and the US

Patrick Brusnahan
clock 19 May 2025 • 1 min read
Trustpilot