FYI, almost all of this new loan is going straight to bondholders, there will be very little spending. And no, it's not enough to prevent a default or some other kind of "restructuring", "reprofiling", you-name-it.
Well, at least after they default, they get the thing they've been trying so hard to reach: a balanced budget. For the simple reason that nobody will lend them a cent any longer. "There, fixed that for you guys."
That may not be true if the default is done carefully with assistance from the EU. Greece could borrow from some special institution or the EU for some years (as it does now). The exit from the euro, though, would help to restart the economy faster and less painfully.
Really? You are from Greece, and you're serious about this? I didn't expect that this would be a serious alternative. OK, suppose that government debt gets defaulted as Greece leaves the Euro. What about private external debt, which I think is also pretty significant? Will businesses struggle to pay this in a strong currency as their own currency depreciates, or does the private sector default, too? I just thinks this sounds like almost a pure loss.
Businesses will be called to pay in either case, either through higher taxes and emergency taxation (as is now), or through a devalued currency. Besides, private debt is actually low in greece.
So isn't this just rescuing European and US investors that invested in Greece and nor really doing anything to help or increase the likely-hood of Greece paying back their debts.
