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That's not a default, it's a new loan. Answer this question: What percentage of Cyprus debt has been defaulted? That is, what percentage isn't going to be pai

by gasull 14y ago

That's not a default, it's a new loan. Answer this question: What percentage of Cyprus debt has been defaulted? That is, what percentage isn't going to be paid at all?

coldtea 14y ago
>That's not a default, it's a new loan. A new loan that can never be repaid, and its only purpose is to prevent an immediate default, it just as good as a default in my books. Maybe not from the point of view of the creditors (they will get some of their money back), but still having very similar consequences to the debtors: difficulty in loaning new money, financial destruction, a take-over-of-control by the creditors' intermediaries and the liquifying any valuable state assets. It already started with indiscriminately stealing 6% from the bank account holders and can only go downhill. >That is, what percentage isn't going to be paid at all? Lots of it. Following the same process as with Greece et al, there is definitely going to be a "haircut".
- gasull 14y ago
  > A new loan that can never be repaid, and its only purpose is to prevent an immediate default, it just as good as a default in my books. That's quite a stretch of the term "default". A default is when a debtor declares that he can't pay and therefore he won't pay. Getting into a new loan doesn't qualify as default. > Maybe not from the point of view of the creditors (they will get some of their money back), but still having very similar consequences to the debtors: difficulty in loaning new money, financial destruction, a take-over-of-control by the creditors' intermediaries and the liquifying any valuable state assets. With a real default, there would be less financial destruction. At least the bleed of paying the loans would stop. > It already started with indiscriminately stealing 6% from the bank account holders and can only go downhill. Agreed. > > That is, what percentage isn't going to be paid at all? > Lots of it. Following the same process as with Greece et al, there is definitely going to be a "haircut". Then it will be a (partial) default on the new loans, but it isn't yet.

by gasull 14y ago

That's not a default, it's a new loan. Answer this question: What percentage of Cyprus debt has been defaulted? That is, what percentage isn't going to be paid at all?

coldtea 14y ago

>That's not a default, it's a new loan. A new loan that can never be repaid, and its only purpose is to prevent an immediate default, it just as good as a default in my books. Maybe not from the point of view of the creditors (they will get some of their money back), but still having very similar consequences to the debtors: difficulty in loaning new money, financial destruction, a take-over-of-control by the creditors' intermediaries and the liquifying any valuable state assets. It already started with indiscriminately stealing 6% from the bank account holders and can only go downhill. >That is, what percentage isn't going to be paid at all? Lots of it. Following the same process as with Greece et al, there is definitely going to be a "haircut".

gasull 14y ago
> A new loan that can never be repaid, and its only purpose is to prevent an immediate default, it just as good as a default in my books. That's quite a stretch of the term "default". A default is when a debtor declares that he can't pay and therefore he won't pay. Getting into a new loan doesn't qualify as default. > Maybe not from the point of view of the creditors (they will get some of their money back), but still having very similar consequences to the debtors: difficulty in loaning new money, financial destruction, a take-over-of-control by the creditors' intermediaries and the liquifying any valuable state assets. With a real default, there would be less financial destruction. At least the bleed of paying the loans would stop. > It already started with indiscriminately stealing 6% from the bank account holders and can only go downhill. Agreed. > > That is, what percentage isn't going to be paid at all? > Lots of it. Following the same process as with Greece et al, there is definitely going to be a "haircut". Then it will be a (partial) default on the new loans, but it isn't yet.