Wall Street Journal
October 20, 2011
A massive restructuring of Greek debt that will mean a deeper cut for private-sector investors looks a lot more likely after the so-called troika of international inspectors concluded in a report that Athens' public-sector debt load is unsustainable.
In the draft of a report prepared by a tripartite commission of the European Commission, European Central Bank, and the International Monetary Fund, and seen by The Wall Street Journal Thursday, the troika urged disbursing the next tranche of aid from Europe's bailout fund as soon as possible. But it warned that Athens must implement strict policy changes to put its embattled economy back on track.
The troika painted a dismal picture of the Greek economy and Athens' political response to the crisis. The economy has contracted much more than previously forecast, the public-sector debt load has become unsustainable for the economy, privatization has been delayed, and the government has fallen far short of implementing promised fiscal and political reforms, the report said.
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Read the Draft Report
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