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"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 i
by 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 agoThe 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.