Wall Street Journal
January 3, 2012
The process of imposing losses to private-sector holders of Greek debt–known as private-sector involvement or PSI–has dogged policy-makers for months. If the Greek finance minister is to be taken at his word, the first large-scale restructuring of sovereign debt of the euro area is nigh.
But the real question is not whether Greece will reach a voluntary agreement with its creditors, but by how much the deal will ease its debt burden. What follows is an analysis of creditor groups that may threaten the process and what a shortfall in the hoped-for debt reduction would mean.
The Oct. 27 agreement for the restructuring envisages the debt stock of €206 billion in private-sector hands would be halved to €103 billion. In order to reach this target, all of Greece’s private-sector creditors also have to agree to the terms of the restructuring voluntarily.
More
No comments:
Post a Comment