There is a Solution for Greece
Greece is on the edge to sink under the burden of its debt. The overall dept is about 500 billion euros owed to European taxpayers, rescue funds, banks and bondholders. The country cannot service its debt if creditors do not release the funds, Bloombergs reports.
The country is running out of cash. The public dept was 325.5 billion euros in the middle of last year, but it is about half a trillion euros including bank and company debt. Finance Minister Varoufakis suggested exchanging ECB-owned debt for perpetual bonds, which will help to remove the burden of repayments. The European Central Bank has always resisted a voluntary haircut on its debt, which can be considered as monetary financing and this one is banned under EU law.
So, it is suggested that all official dept of Greece to be transformed into a perpetual bond. A perpetual bond is also known as a "consol". The advantage of this type of bonds is that they are not redeemable but pay a steady stream of interest forever. Moreover it can be treated as equity, but not dept. If all the Eurozone members agree on this, it can be a solution for Greece in order to come out from the deadlock economic crisis.
Other materials on this subject
- Greece Emerges from Eurozone Bailout Programme The economy has grown slowly in recent years and is still 25% smaller than when the crisis began.
- Greece Can be Competitive Once Makes Reforms: Schaeuble Greece can have a competitive economy once it makes reforms agreed with its euro zone creditors, German Finance Minister Wolfgang Schaeuble said on Monday.
- Greek Unemployment Rises to 23.4 Percent in August, Eurozone Highest Greece's unemployment rate has come down from record highs but remains more than double the euro zone's average of 10 percent in August.
- Eurogroup to Disburse 10.3 bln Euros to Greece The Eurogroup also recalled the medium-term primary surplus target for Greece at 3.5% of GDP as of 2018 and underlined the "importance of a fiscal trajectory consistent with the fiscal commitments under...
- 48-Hour Strike Began in Greece Public transport workers joined the strike. Today and on Saturday in the Greek capital metros, trolley buses and trams will not work.
Read also
-
Ethnic Cleansing or a Last Stand for Survival? – Ambassador Tigran Mkrtchyan’s op-ed
-
National Legislation to be Complied with Demand of Smooth Transportation of Goods between EEU Member States
-
Meeting with Members of the Hellenic Parliament: Development of Effective Relations in the Geopolitical Difficult Times Highlighted
-
Strong earthquake in Greece: the tremor was felt in Athens
-
In February 2022, Suren Papikyan announced that the strategy is ready, but we have reached November but still the global...
-
Greece Strongly Condemns Execution of Armenian POWs by Azerbaijani Forces
-
EBRD Raises Growth Forecast for Armenia’s Economy for 2022
-
PM Pashinyan Receives the Delegation Led by the Greek Foreign Minister
-
17:08The regular session of the Anti-corruption Policy Council takes place in Jermuk
-
15:05The Prime Minister sends congratulatory messages to the supreme leader of Iran and the President of Iran
-
11:11Armenia sends earthquake aid to Turkey
-
10:43Commemoration of the Pontiff St. Sahak Partev
-
09:16Some roads are closed and difficult to pass in Armenia
-
19:55Phone conversation of the Foreign Minister of Armenia with the U.S. Assistant Secretary of State for European and Eurasian Affairs
-
18:30Prime Minister Pashinyan and President Khachaturyan meet
-
18:20Ararat Mirzoyan with Co-Chairman of the OSCE Minsk Group of France Brice Roquefeuil
-
17:01Humans could land on Mars within 10 years, Musk predicts
-
16:45France, US urge 'immediate' end to Nagorno Karabakh blockade
-
16:01Blockaded Nagorno Karabakh launches fundraiser to support quake-hit Syria
-
15:59Earthquake death toll in Turkey rises to 18,342
-
15:43Ararat Mirzoyan Held a Telephone Conversation with Sergey Lavrov
-
15:06French president rules out fighter jet supplies to Ukraine in near future
-
14:475 Day Weather Forecast in Armenia
-
14:44President Vahagn Khachaturyan wrote a note in the book of condolences opened in the Embassy of Syria in Armenia
-
14:20Azerbaijan’s provocations impede establishment of peace and stability – Armenian FM tells Russian Co-Chair of OSCE MG
-
12:57France representation to OSCE: Paris calls on Azerbaijan to restore freedom of movement through Lachin corridor
-
11:40Command of Kosovo forces highly appreciated preparation of Armenian peacekeepers
-
10:16The United States withdrew from sanctions against Syria for six months the provision of assistance after the earthquake
day
week
month
Humidity: %
Wind: km/h