PARIS -(Dow Jones)- If Greece crashes out of the euro zone it would cost France around EUR50 billion net in lost loans, outgoing French Finance Minister Francois Baroin said Tuesday in a radio interview.
"If Greece leaves the euro, its economic model collapses and there is no longer a banking system, that would cost France EUR50 billion net, in addition to the securities held by banks and insurer in their portfolios," Baroin said on French radio Europe 1, shortly before president-elect Francois Hollande takes over from incumbent Nicolas Sarkozy.
"[Greece] needs to make efforts. If they don't want to do that, if there is no government and instability continues, the question [of leaving the euro zone] will become more sensitive," Baroin said.
-By William Horobin, Dow Jones Newswires, +33 1 4017 1737;
(END) Dow Jones Newswires
May 15, 2012 03:02 ET (07:02 GMT)
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