by Calculated Risk on 6/17/2011 01:09:00 AM

From Dow Jones: Trichet: Clear Position Is Greek Default Should Be Avoided - Report

It is the clear position of the European Central Bank that a Greek default in any form should be avoided, as should any action in the Greek crisis that would spawn a credit event, ECB President Jean-Claude Trichet says in an interview to be released Friday.
...
"We are telling them that doing anything that would create a credit event or selective default or default is not advisable," he says.

Still it remains the decision of political authorities and the ECB will act accordingly, based on decisions made, he notes. "But again, we are saying very clearly that they should avoid compulsion, credit event, or selective default or default. Our position is clear."

Trichet also said no one is considering that Greece, Portugal or Ireland leave the euro zone.

Earlier from the WSJ: EU Rehn Confident Next Greece Loan Tranche Approval Sunday

Euro-zone governments will agree at a meeting starting Sunday in Luxembourg to pay the next installment of rescue loans for Greece, while delaying the final decision on a longer-term Greek aid package until July, European Union economics commissioner Olli Rehn said in a statement Thursday.

Rehn strongly implied that the International Monetary Fund, which must also sign off on the loan payment, would agree even if euro-zone governments haven't put a multi-year financing plan in place for the country.

This would be a break from the IMF's history ... interesting times.