Argentine president welcomes Greek referendum result

(Baonghean) - Many countries around the world may be scared by the decision of Greek voters to reject the conditions of a bailout deal from creditors, but the leader of Argentina, which suffered a similar crisis more than a decade ago, boldly welcomed the referendum result.

There are clear similarities between Argentina's 2002 financial crisis and the turmoil in Greece: rigid monetary regimes, creditors dealing with domestic politics to change matters, and a banking system at the time of default.

Greeks celebrate the referendum results. Photo: Reuters

In Greece, more than 61% of voters rejected a deal that would have imposed more austerity on their devastated economy. President Cristina Fernandez said the Greek referendum result was “a resounding victory for democracy and dignity”. “The Greek people said no to impossible and shameful conditions. The Argentine people understand that,” she said.

She urged European leaders to understand the message of the Greek people. “They cannot force anyone to sign their own death warrant,” the Argentine president stressed. In 2002, Argentina also defaulted on $100 billion in debt, plunging millions of people into poverty. But the South American country has since recovered.

Also immediately after the referendum, Greek Finance Minister Janis Varufakis announced his resignation. Mr. Varufakis announced that his departure would pave the way for the Greek Government to negotiate with creditors on how to resolve the country's public debt.

Phuong Thao

(According to Reuters 6/7)