Concern grows over debt crisis in Europe

Concern grows over debt crisis in Europe
By Khanyisa Tabata
30 June 2011

Reserve Bank Governor Gill Marcus has warned that the global economy faces a significant risk from the sovereign debt crisis in some countries in Europe.

In a speech in Pretoria, Marcus said a debt default by Greece could lead to a systemic banking crisis in Europe.

Governors of the US Federal Reserve, the Bank of England and the European Central Bank have also expressed their concern.

This evening, Marcus will host a cocktail party to mark the 90th anniversary of the Reserve Bank.

It is one of the few central banks in the world that has private shareholders.

Strict controls ensure that shareholders cannot influence the bank’s monetary policy or its daily operations.

Econometrix chief economist Azar Jammine says the central bank is held in high regard internationally