DRESDEN: Greece's fate in the euro area continued to cast a shadow over the second and final day of a Group of Seven finance ministers meeting in Dresden Friday with still no sign of a deal in sight.
The governor of the Bank of Japan Haruhiko Kuroda -- who is attending the meeting -- warned of the consequences of a possible "Grexit" or Greek exit from the euro.
"If for the first time a country leaves the eurozone, then it won't be the same stable monetary union as before," Kuroda told the business daily Handelsblatt.
In fact, the euro area would then simply resemble a system of fixed exchange rates and such systems had never proven particularly successful in the past, the central bank chief said.
Nevertheless, Kuroda said he did not believe there would be any contagion effects "in the short term if Greece defaults or even leaves monetary union."
That would "manageable," he said.
While Greece is not officially on the agenda of the Dresden meeting -- which is preparing for a wider summit of G7 leaders starting on June 7 -- the issue was at the top of everyone's minds.
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