Here's The Real Reason Greece STILL Denies the Restructuring Plan

by Mike "Mish" Shedlock

Business Insider
April 18, 2011

A Greek newspaper reported that Greece is in talks with the IMF regarding debt restructuring. However, Greek Finance Minister issued this denial "Restructuring is not an issue we’re discussing".

Last week, the media went gaga over a no-news announcement from German officials that restructuring was on the table. It should not have caused a stir because anyone watching the market knows perfectly well a restructuring is coming. Denials from Greece cannot stop it.

Why the Denials from Greece?

Inquiring minds are likely asking "Why does Greece insist it will not restructure?"

The answer is simple: Greek public pension plans are loaded with Greek sovereign debt garbage. A restructuring would shatter the values of those plans and the expected payouts to the pensioners.

However, the market does not care what Greek or IMF officials think. Nor does the market care about those pension plans. A yield of 20.34% on the 2-year government bond is proof enough.

This is what happens when the market takes matters into its own hands.

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