European leaders may step forward and make good on the debt Greece owes to the International Monetary Fund, according to one expert. Jan Randolph, Director of Sovereign Risk at HIS, believes the eurozone group governments have probably made private assurances that they will cover Greece’s debt to the IMF. Randolph said the group won’t make that public, because it would give Greece leverage. Randolph says the possibility of contagion following a Greek default is low, and that’s not why Europe would step in. ‘I think the reason is moral really,’ said Randolph. ‘The U.S. government, the Canadian government, and possibly the U.K. government would revolt at the idea that a Eurozone government like Greece can’t make good on an IMF debt while being in the Eurozone group.’ According to the media reports, the EU has called an emergency summit in Brussels for Monday after finance ministers failed in their latest efforts to resolve the debt crisis.
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