<\/p>\n
I keep on reading analyses over the write down of the Greek debt. As usual, most analysts are focusing on the surface, not the consequences of an incident. But even if we stay on this surface, we should still state the truth. Right?<\/p>\n
The total Greek debt is approximately 360 billion Euro.<\/p>\n
Out of which 154 “can’t be touched”, as these are loans by the IMF, the bonds bought by the European Central Bank<\/p>\n
So the “haircut” was applied on 206 billion Euro. 103 of them were written down. So initially Greece was relieved of 103 billion.<\/p>\n
But at the same time Greece has to recapitalize its banks (due to their forced write down). For this reason it obtained another credit facility of 30 billion.<\/p>\n
So the actual benefit is 103 – 30 = 73 billion Euro.<\/p>\n
Is 73 billion 50% of 360 billion? No, it’s barely 20%.<\/strong><\/p>\n Some people say that there will be an additional amount of 30 billion Euro, which will be borrowed in order to be paid in advance to the Greek bond owners, but this is not 100% sure yet (so I should not deduct it from the sum as well).<\/p>\n Let’s draw the line…<\/p>\n Greece saved 73 billion Euro of debt, an important amount indeed. For this “relief” it will:<\/p>\n · Continue the program of austerity measures for at least a decade.<\/p>\n · Lose access to the financial markets for even longer.<\/p>\n · Mark its banks and companies with the “mark of the one whose debt was written down”.<\/p>\n · Be considered by many people as a country that went bankrupted (even in a special, protected, way of bankruptcy).<\/p>\n · Probably lose its banks plus their penetration in several other countries.<\/p>\n Was it the best solution for the country? Only the future will tell us. But still let’s be accurate: 73 is not 50%.<\/p>\n <\/p>\n PS. What is a real pity is that Greece will be forced to do all the necessary changes that it should have been doing since many years ago. This is what I shared with you many times in the past, an opinion with which millions of other Greeks agree as well. Let’s hope that Greece will step on the break and stop its fall. Because from now on the next step is only the exit from Eurozone, the ultimate disaster.<\/p>\n","protected":false},"excerpt":{"rendered":" I keep on reading analyses over the write down of the Greek debt. As usual, most analysts are focusing on the surface, not the consequences of an incident. But even if we stay on this surface, we should still state the truth. Right? The total Greek debt is approximately 360 billion Euro. Out of […]<\/p>\n","protected":false},"author":3,"featured_media":59454,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[205],"tags":[],"_links":{"self":[{"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/posts\/10294"}],"collection":[{"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/comments?post=10294"}],"version-history":[{"count":0,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/posts\/10294\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/media\/59454"}],"wp:attachment":[{"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/media?parent=10294"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/categories?post=10294"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/tags?post=10294"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}