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The Lethal Deferral of Greek Debt Restructuring

Varoufakis, Yanis, (2015), “The Lethal Deferral of Greek Debt Restructuring”, Project Syndicate, 28 July

The point of restructuring debt is to reduce the volume of new loans needed to salvage an insolvent entity. Creditors offer debt relief to get more value back and to extend as little new finance to the insolvent entity as possible. Remarkably, Greece’s creditors seem unable to appreciate this sound financial principle. Where Greek debt is concerned, a clear pattern has emerged over the past five years. It remains unbroken to this day.

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