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I've never heard any claims that the 41 billion will just disappear. The worst I've heard is that they will restructure the loans to extend pay back dates. Als

by c2 15y ago

I've never heard any claims that the 41 billion will just disappear. The worst I've heard is that they will restructure the loans to extend pay back dates. Also, from the article, the banks have a drop in the bucket exposure to these loans, which isn't even reporting in their annual reports as a risk. The highest exposure bank seems to be half a billion on BoA's balance sheets, and like I said, it isn't like that debt obligation is just going to disappear. There's a lot of FUD around Greece "defaulting", and like I said, I think the main impact area will be the stock market, not necessarily bank balance sheets or the economy at large.

dpapathanasiou 15y ago
"I've never heard any claims that the 41 billion will just disappear." What do you think default means? It has happened before, most recently with Argentina in 2002, and with Russia in 1998, which triggered the LTCM crisis. "The worst I've heard is that they will restructure the loans to extend pay back dates." That is just default in everything but name. The reason the so-called seven year Vienna plan has so much resistance is that ECB members know they'll never get paid back.
- c2 15y ago
  The FUD "defaulting" means they won't pay you back. The real "defaulting" in this case means they will restructure the debt. It is a credit agency's definition of "default", but it won't be as adverse as the money disappearing from balance sheets.
  - dpapathanasiou 15y ago
    "The real "defaulting" in this case means they will restructure the debt." So far, all proposals to do that have been shot down by the ECB b/c even with longer and more generous terms, Greece is not in a position to service the debt, let alone repay it.