HAMBURG, Germany, Nov 8 (Reuters) - Loans given to struggling euro zone states will be paid back but the possibility of default still has to be factored in, the head of the euro zone’s bailout fund told Reuters on Thursday.
“Loans will be serviced and paid back. Risks are of course taken on and you cannot completely exclude the possibility that such risks will become real,” Klaus Regling, head of the European Stability Mechanism (ESM), said on the sidelines of an economic conference in Hamburg.
“But it is not the usual case - it’s a big exception, if it ever were to even arise. That has not happened so far,” he said.