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If I'm understanding you correctly, you're not saying its the market value to become a creditor of greece (which would depend on the creditworthiness of greece)
by winstonewert 9y ago
If I'm understanding you correctly, you're not saying its the market value to become a creditor of greece (which would depend on the creditworthiness of greece). Its the market value that you would have to be paid to be willing to become the debtor in place of greece.
Am I right?
- akvadrako 9y agoThat's how I think of it. So according to IPSAS accounting in 2013, Greece's debt is 18% of GDP. If they could raise that much money, they could be debt free, assuming political will.
- sandstrom 9y agoI agree with this (though not some of the earlier things, e.g. that Greece is less indebted than the Netherlands). Two observations: 1. If they started buying their own debt back en-masse the price would probably go up (as with any other good where demand increases). 2. The problem of Greece, and other poor countries, is that they have trouble mustering resources. Raising 18% of GDP from a poor population isn't that easy. If Greece was a wealthy country they probably wouldn't have the debt they have.