According to Deutsche Welle’s internet page, Marcel Fratzscher, president of the Berlin based economic research institute DIW, considers a new restructuring of the Greek debt to be only a matter of time.
As stated by the same source, in his statements to the German Press Agency (DPA), Fratzscher estimated that, “It is clear that Greece will sooner or later need a new debt restructuring.”
Fratzscher expressed the opinion that the Greek government is still not able to implement many of the important reforms that it has undertaken, while he gave as examples the field of privatizations and tax collection. “Some of the targets set by the Greek government will not be achieved,” the German specialist underlined, while he estimated that the issue will be addressed at the latest by the end of the year with the emergence of the next funding gap.
Fratzscher went as far as to say that sooner or later, one way or another, half of Greece’s public debt will have to be deleted. As he said, in contrast with the first “haircut” in March 2012, this time the official sector may have losses as, “There are no private creditors anymore.”
He explained that the financial burden the German taxpayer will be called to bear is hard to be estimated in the case of a new restructuring of the Greek debt. However, according to what Deutsche Welle noted, in his speech at the International Frankfurt Business Journalists Club (ICFW),he stressed that Germany will be called to cover liabilities that reach double-digit billions.
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