FRANKFURT – As things stand now, Greece can’t pay its debts. That’s what more and more people – including now the International Monetary Fund and even, it seems, Germany’s finance minister – are saying.
So what to do? Greece’s creditors have indicated they could agree under certain conditions to ease the terms of Greece’s debt, which stood at 317 billion euros ($355 billion) as of the end of last year.
About 80 per cent of that is owed to the other eurozone governments, the IMF and the European Central Bank. So a debt restructuring there wouldn’t hurt investors, roil markets, or destabilize banks.
What they could do
Stretch payments: Creditors could stretch out the loan repayment dates, as they have already for some of them. For instance, final repayment of the last of 52.9 billion euros in loans from a 2010 bailout has already…
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