European Central Bank governing council member Christian Noyer said countries pay a higher price for unpaid debt to pay for it, reinforce the ECB's view that euro nations should be ruled out financial restructuring .
"People forget to look at what happens when a country defaults, it's something I've been studying for several decades," Noyer said in a speech in Paris. "Financial markets do you pay for the defect with higher interest rates. I do pay for the present value of losses, plus a big bonus with the uncertainty associated with that. You pay much more for non-compliance, if not in breach their obligations. "
The debate on whether countries such as Greece and Ireland can or should fulfill its commitments to bondholders has shaken financial markets in recent weeks to fight to keep the debt to be less than 100 percent of GDP in the coming years.
Germany led the push for bondholders to share the cost of solving the problems of sovereign debt, causing a rise in borrowing costs for Europe's most indebted countries. The position was well watered down, when finance ministers of the Union agree that any debt restructuring should be considered a "case by case, instead of automatic in the case of bailouts.
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