Will a write off of Greek debt solve its problems?

The leaders of EU are debating how to bankrupt Greece effectively and without a sudden shock. They are proposing that banks should write off 60% of Greek debt, but bankers are willing to accept only 40%. But will this write off solve Greek problem?

Partially. It would definitely help Greece to balance their budget, but it doesn’t solve it. Greece will still be lacking money to finance their mandatory expenses and with bankruptcy who will be willing to lend them more money? So even with writing off its current debt, the country will still struggle to get money to finance its bureaucracy, social expenses, healthcare, etc. (what a socialism in there!).





0 responses to “Will a write off of Greek debt solve its problems?”

  1. Debt Solve | Debt & Credit Blog| Free Online Tips and Resourses says:

    […] with bankruptcy who will be willing to lend them more money. So even with writing off its current Debt, the country will still struggle to get money to finance its bureaucracy, social expenses, […]

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