Five years after handing Greece the biggest sovereign-debt write-off in history, European policy makers have come full circle to the point they had all hoped to avoid: a real discussion on debt relief.
Despite all the efforts to shrink Greeces debt since the start of the financial crisis, the countrys economy has shrunk at a faster pace, so its obligations have become increasingly onerous. With the countrys debt-to-gross domestic product almost 70 percent larger than it was in 2008, the International Monetary Fund is insisting that more restructuring is required to make the nations finances sustainable. With almost all of Greeces debt now held by official lenders, its taxpayers who will be footing the bill rather than investors.
Euro-are…
Read the full article at: http://www.bloomberg.com/news/articles/2016-05-23/euro-area-confronts-greek-debt-spiral-with-imf-demanding-action