The replacement of market funding with increasingly concessional loans from the official sector may have reduced the Greek governments balance sheet debt by as much as 200bn, yet the headline numbers havent captured any of this alleged gain.
In our previous post we looked at whether this was reasonable, focusing on several sets of accounting guidelines to see how they might apply to Greek sovereign obligations: International Financial Reporting Standards (IFRS), International Public Sector Accounting Standards (IPSAS), the European System of Accounts (ESA 2010), and Eurostats Manual on Government Deficit and Debt (MGDD).
Under IFRS, which is standard for public companies everywhere outside America, and IPSAS, which is an accounting …
Read the full article at: http://ftalphaville.ft.com/2016/06/14/2165794/what-if-greece-got-massive-debt-relief-but-no-one-admitted-it-part-2-5/