Below are a couple of very interesting articles:
Greece does not need debt forgiveness (by Daniel Gros)
Another ad hoc deal or a step towards a solution? (by openeurope)
Daniel Gros describes very well that it is less the level of debt than the interest rate which matters. At the current (subsidized) low interest rates, a well-functioning Greek economy might not have difficulty servicing the debt as it presently stands.
openeurope gives a beautiful summary of the 4 elements making up the latest 'deal' (debt buy-back, interest rate reduction, deferral of interest & extension of maturities, dispersal of ECB-profits on trading Greek bonds). It also explains what the 'deal' means for future prospects of Greece and, most importantly, of Greeks.
Greece does not need debt forgiveness (by Daniel Gros)
Another ad hoc deal or a step towards a solution? (by openeurope)
Daniel Gros describes very well that it is less the level of debt than the interest rate which matters. At the current (subsidized) low interest rates, a well-functioning Greek economy might not have difficulty servicing the debt as it presently stands.
openeurope gives a beautiful summary of the 4 elements making up the latest 'deal' (debt buy-back, interest rate reduction, deferral of interest & extension of maturities, dispersal of ECB-profits on trading Greek bonds). It also explains what the 'deal' means for future prospects of Greece and, most importantly, of Greeks.
I can make only one comment about the buyback: The possibility of an accident is high. So, if the buyback wasn't CAREFULLY planned and FULLY PUT into place before its announcement, then we are dealing with a bunch of idiots.
ReplyDeleteThat is EXACTLY my argument! One can't have a package where a major pillar is subject to uncertainty. Even if that major pillar eventually turns out as a great success, it is still a fairly chancy way of handling things.
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