Greek Debt Buyback: Another Idiotic European Idea Or A Step Toward An Actual Solution?
November 28, 2012 - 9:26am
From Open Europe Buying Back Greece: Another Ad Hoc Deal Or A Step Towards A Solution? Early on Tuesday morning the eurozone and the IMF reached an agreement which has been widely billed as their most comprehensive package to aid Greece. Now that the dust has settled somewhat, Open Europe assesses the key components of the deal. Conclusion For all the talk and all the figures flying around there is still only one that really matters – 124% debt to GDP ratio in 2020, clearly this is not sustainable. Further measures will be needed and the ad hoc nature of this deal, particularly the way it skirts the big decisions, suggests that fears over a ‘Grexit’ will return as soon as Greece begins missing its targets once again. 1. Debt buyback The buyback is short on details, with little clue as to where the money will come from or which bonds will be purchased. The idea behind a buyback i...
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