Odendahl, Christian, (2015), “Lighten the load”, Centre for European Reform, 26 Αυgust
The IMF says that Greece’s debt burden is unsustainable. That is why the IMF will not contribute to the third assistance package (recently agreed by Europe and Greece) unless Greek debt is reduced. The problem is that an outright cut in the value of the debt – a haircut – is politically unacceptable, especially to Germany. The other option – extending the maturity of existing official loans further and lowering interest payments – is not enough for Greece to return to the markets.
Relevant Posts
- Barslund, Mikkel, Barnebeck Andersen, Thomas, (2015), “Greece’s poor growth prospects”, Ceps publications, 21 Αυgust
- Scarpetta, Vincenzo, (2015), “The third Greek bailout and the challenge to national democracy (in Athens and beyond)”, Open Europe blog, 21 Αυgust