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Greece rejects reports of eurozone contingency planning for its exit

Xinhua, May 24, 2012

• Greece categorically dismissed on Wednesday media reports over contingency planning by eurozone member countries for the possibility of a Greek exit from the euro.

  "Such reports not only are false, but undermine Greece's efforts to address challenges," said a press release issued by the Greek Finance Ministry.

  The press statement came after a string of reports in some international media that during the latest tele conference of the euro working group on Monday there had been a clear call to eurozone member countries to draw up contingency plans in case debt-ridden Greece leaves the European common currency zone.

  Greece is kept afloat with two bailout packages agreed with European counterparts and the International Monetary Fund since May 2010 in exchange of a painful and unpopular austerity and reform plan.

  The aim is to avoid a disorderly bankruptcy that could lead to the country's exit from the euro as well, with grave consequences for the eurozone, according to analysts.

  Despite progress steps made over the past two years, uncertainty over the success of the plan to overcome the Greek debt crisis remains, amid missed targets, timetables and spiraling recession.

  Fears have increased this spring after the May 6 general elections in the country and the call for a second round of polls on June 17, after parties failed to form a coalition government.

  Opinion surveys indicate that pro-bailout political forces will engage in a fierce battle against anti-bailout parties for parliamentary majority. The outcome could determine whether Greece will stick with the austerity and reform program to secure further vital multi-billion euro aid or change course.

  In such a case, Greece could be left with no more rescue loans and be led to a chaotic default and an exit from the eurozone.

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