French Finance Minister Christine Lagarde has described the Euro as a credible as well as solid currency.

Christine Lagarde also said in an interview with the BBC that she was optimistic debt-laden Greece would be able to slash its public debt.

Lagarde’s comments emerged as the Euro slipped to a 19-month low against the pound on Thursday. Sterling was trading at €1.2351 against the Euro in morning trading, the lowest since November 2008.

Fall in Euro increased the cost of insuring five-year Greek debt against default. Estimates showed that it would cost $1,085,000 to ensure $10 million of debt for a period of five years.

The perceived risk of default by Greece has been intensifying worries about the European debt crisis.

Earlier this month, Moody's downgraded Greek debt to junk status, putting more pressure on Eurozone.

European debt crisis that is already swallowing up Mediterranean governments is pressuring the markets over concerns that risks could trigger a full-blown banking crisis across the continent.