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Debt Buybacks and Backdoor Restructurings: Can Greece Pull an Ecuador?

Levy-Yeyati, Eduardo, (2011), ‘Debt Buybacks and Backdoor Restructurings: Can Greece Pull an Ecuador?’, www.brookings.edu, 29 July.

The latest European package includes, as a way to lighten Greece´s heavy debt burden, a debt buyback: the European Financial Stability Facility (EFSF) would lend the money for Greece to buy back its own bonds in the secondary market at a discount, imposing a loss on private creditors while avoiding an outright default.