Vox
July 14, 2011
What to do about Greece? The face value of Greek sovereign debt is now around 150% of GDP and rising. This column proposes a debt buyback scheme and outlines how it could be achieved to the benefit of the whole of Europe.

Last week, one credit rating agency rejected the Eurozone’s preferred solution to the excessive debt stock – that is, sizeable “voluntary” private-sector involvement, meaning a long rollover at low interest rates of debt held by Eurozone private banks. Moody’s called this approach “selective default” – a label that would make it almost impossible for Greece to raise new private money for several years.
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