Greek debt viable, no haircut needed

If there was a ranking of the best OECD best students, Athens woud have presented the best homework to the troika.

“Greece does not need a debt relief. I do not agree that the greek debt is not sustainable. Settlement we have done with the EFSF for the greek debt robs the meaning from the classical interpretation of the debt to GDP ratio,” said Klaus Regling.

“Greece benefits from a ten-year moratorium on interest payments and maturing loans for over 10 years. Therefore, it has the time and space needed to recover. Greece does not have the risk of a pending debt for at least a decade. It benefits from cheap loans from the EFSF and saves more than 8.5 billion every year in its budget. The EU solidarity in Greece is personified in the lending by the EFSF.”

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