Calamos Supports Greece
GreekReporter.comGreek NewsEconomyRoubini: Time to face reality over Greece's debt

Roubini: Time to face reality over Greece's debt

Greece needs an orderly restructuring of its public debt to head off an “inevitable default”, says New York University professor Nouriel Roubini, the man credited with predicting the financial crisis.
He said the “draconian” austerity measures agreed as part of a €110bn (£90bn) EU-IMF bailout is prolonging the country’s recession.
“It is time to recognised that Greece is not just suffering from a liquidity crisis; it is facing an insolvency crisis too,” he writes in the Financial Times.
Greek debt is being downgraded to junk levels, making it harder and more costly for the government to borrow.
In return for the emergency loans, Greece has pledged to bring its fiscal shortfall under the EU’s 3pc by 2014 from 13.6 percent last year and to implement structural reforms in its economy to make it more competitive.
Mr Roubini said this would still leave the country with an “unsustainable” public debt-to-GDP ratio of 148pc by 2016 and vulnerable to a further debt crisis from even minor shocks.
He argues that orderly restructurings, such as in Pakistan in 1999 and Uruguay in 2002, “are better for most private creditors, the debtor nation and multilateral institutions thatn an Argentine-style botched bail-out”.

See all the latest news from Greece and the world at Greekreporter.com. Contact our newsroom to report an update or send your story, photos and videos. Follow GR on Google News and subscribe here to our daily email!



Related Posts