New Haircut Scenario
- Written by E.Tsiliopoulos
The Greek debt is not viable, unless there is a new "haircut" is the message from a study published by DZ bank, which believes the IMF assessments are over-optimistic.
The Greek debt will fluctuate around 160% of GDP, as long as the present interest rates are maintained , is the point the bank's economist Daniel Lenz made to German newspaper "Die Welt." Dr. Lenz added that debt will be at 143% in most optimistic scenario, according to which starting in 2014 creditors will forgo interest payments.
Even in the second scenario, "Die Welt" argues, the country will need 60 billion euros in 2020 to cover its fiscal needs. The solution promoted by DZ Bank requires another "haircut" that will burden the creditors of the state with 100 billion euros, but will be the only thing guaranteeing a resurgence for the Greek economy.
