New York Times
June 20, 2011
The Greek government owes more than it can afford to pay, now or in the near future, at market interest rates. There are two options: reduce the payments through some form of restructuring, or move the debt into the hands of people who are willing to charge below market rates for the foreseeable future.
In this decision, the International Monetary Fund has relatively little to say. This is really a political decision to be made by the European Union, with discreet backing from the U.S. and China.
While European Union leaders are surely tired of Greek politicians at this point, they also fear the implications for other euro zone countries if Greece says it can’t pay or won’t pay. And the damage would not be limited to Spain.
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