4 ms·
Well, not exactly. Debts of government were written-off about 50% https://en.m.wikipedia.org/wiki/Greek_government-debt_crisis https://en.m.wikipedia.org/wiki/G
by hamilyon2 7y ago
Well, not exactly. Debts of government were written-off about 50% https://en.m.wikipedia.org/wiki/Greek_government-debt_crisis https://en.m.wikipedia.org/wiki/Greek_government-debt_crisis
As far as I know that means that creditors from northern Europe paid 50% of debts. This is organized default and a deal package that came with it. I wouldn't say German banks were exactly winners here.
- bad_user 7y agoIt's the same story in many countries ... populist governments increase public deficit via corruption and salary increases in the public sectors in order to secure votes for the next election, then get loans to pay said debt and then everybody blames the evil banks, FMI, EU, they blame anybody else but themselves for supporting corruption and populism.
- Xelbair 7y agoget 50%, or lose 100%? which one you would prefer?
- coldtea 7y ago>Debts of government were written-off about 50% That's a huge bargain for the banks compared to bankruptcy and its impact. And the Greek government (much less the people) still doesn't see that 50% write-off, since instead of defaulting and making a clean start with it, it's forced to take new lifeline loans, sell off assets at special ultra-low prices, and still repay everything. The current debt after a decade of "aid" is larger than the initial value - meanwhile their GPD has took an impact similar to that of war. For a private company or citizen, it would be the equivalent of not having the option to go bankrupt, but instead be sold to slavery.