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Do you have a citation for this? I looked on Google and didn't see any evidence that creditors were asked to take a haircut on Greek debt. In fact this article

Do you have a citation for this? I looked on Google and didn't see any evidence that creditors were asked to take a haircut on Greek debt. In fact this article on cnbc seems to suggest that Europe is resisting any suggestion of a haircut: http://www.cnbc.com/id/102371294 http://www.cnbc.com/id/102371294 I could definitely be wrong, just want to know where you're getting your information from.

Lazare 11y ago
From the wikipedia overview[1]: "A year later, a worsened recession along with a delayed implementation by the Greek government of the agreed conditions in the bailout programme revealed the need for Greece to receive a second bailout worth €130 billion (including a bank recapitalization package worth €48bn), while all private creditors holding Greek government bonds were required at the same time to sign a deal accepting extended maturities, lower interest rates, and a 53.5% face value loss." When you do the math (the maturity extension and interest rate cuts were steep), the total haircut was 75%+, with the bulk of the losses absorbed by French banks. It got a HUGE amount of press back in 2012—at least in the financial press. Google for "greece", "2012", "bond swap", "haircut", "debt swap", etc., you'll find hundreds of articles. Many of which boiled down to "um, if the troika doesn't take a haircut too, it won't fix the core problem, and we'll be right back here in another 2-3 years". They were right too. :( Edit: Your link is part of that. All that's left is government held debt, and they STILL insist on avoiding any haircut, just as they have been this entire time. They were happy to see other people lose their money, but by now we're out of people with skin in the game. All that's left is the troika. Their insistence on avoiding a haircut is why everyone else had to have a 75%+ haircut..and why even that wasn't enough. [1]: https://en.wikipedia.org/wiki/Greek_government-debt_crisis#2010.E2.80.932014 https://en.wikipedia.org/wiki/Greek_government-debt_crisis#2...

Lazare 11y ago

From the wikipedia overview[1]: "A year later, a worsened recession along with a delayed implementation by the Greek government of the agreed conditions in the bailout programme revealed the need for Greece to receive a second bailout worth €130 billion (including a bank recapitalization package worth €48bn), while all private creditors holding Greek government bonds were required at the same time to sign a deal accepting extended maturities, lower interest rates, and a 53.5% face value loss." When you do the math (the maturity extension and interest rate cuts were steep), the total haircut was 75%+, with the bulk of the losses absorbed by French banks. It got a HUGE amount of press back in 2012—at least in the financial press. Google for "greece", "2012", "bond swap", "haircut", "debt swap", etc., you'll find hundreds of articles. Many of which boiled down to "um, if the troika doesn't take a haircut too, it won't fix the core problem, and we'll be right back here in another 2-3 years". They were right too. :( Edit: Your link is part of that. All that's left is government held debt, and they STILL insist on avoiding any haircut, just as they have been this entire time. They were happy to see other people lose their money, but by now we're out of people with skin in the game. All that's left is the troika. Their insistence on avoiding a haircut is why everyone else had to have a 75%+ haircut..and why even that wasn't enough. [1]: https://en.wikipedia.org/wiki/Greek_government-debt_crisis#2010.E2.80.932014 https://en.wikipedia.org/wiki/Greek_government-debt_crisis#2...