U.S. Treasury Secretary Jacob J. Lew urged Greece and itsinternational creditors to reach an agreement on steps that need tobe taken to avoid the nation's exit from the euro and any resulting crisis.

“There's no doubt that if this leads to a crisis such as Greeceleaving the euro zone, it will cause an enormous amount ofdisruption and hardship in Greece,” Lew said in an interviewWednesday. “Even if the contagion risk is much less now than itwas, say, in 2012 and earlier, it would not be a good thing in aworld economy just recovering from a deep recession to have thatkind of uncertainty introduced.”

Lew will meet Friday with Greek Finance Minister YanisVaroufakis during semiannual International Monetary Fund and WorldBank meetings in Washington. Some European officials, includingGerman Finance Minister Wolfgang Schaeuble, are skeptical whetherthere is enough timeto work out a deal warranting a disbursement from the 240billion-euro (US$256 billion) international bailout.

Speaking about China's planned Asian Infrastructure InvestmentBank, Lew said he was encouraged by conversations he had withChinese officials during last month's trip to Beijing. Lewindicated that the U.S.'s resistance to joining may fade at somepoint, though the current question is whether China can ensure thebank operates in a way that enhances economic opportunities.

“We haven't foreclosed any options for the future,” he said.“We've made clear to China and to the international financialinstitutions that we very much look forward to being able tocollaborate.”

Lew reiterated his call for other economies to strengthen andsaid the strong dollar reflects the relative pace of expansion ofthe world's largest economy compared with others.

“I certainly don't want the U.S. economy to get weaker,” hesaid. “We have the good fortune of having the stronger economy. Theother economies need to get stronger.”

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