Advanced Search
MyIDEAS: Login

Debt Restructuring and Economic Prospects in Greece

Contents:

Author Info

  • William R. Cline

    ()
    (Peterson Institute for International Economics)

Abstract

Severe recession in 2010–12 drove the need for sovereign debt reduction in Greece, despite a massive cut in government spending. The 2012 restructuring cut privately-held debt by about 50 percent, but much debt was exempt (IMF, euro area governments, ECB), and new borrowing was needed to recapitalize banks. In December an official sector package of lower interest rates, buybacks, and remittance of ECB profits on Greek bonds boosted total relief by about one third. Nonetheless, even under favorable conditions the ratio of debt to GDP is unlikely to be much below 120 percent by 2020, limiting market access for a country that has restructured with deep haircuts. Although Greek borrowing needs are now covered for several years, more relief from the official sector thus seems likely to be needed in the future.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.piie.com/publications/pb/pb13-3.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Peterson Institute for International Economics in its series Policy Briefs with number PB13-3.

as in new window
Length:
Date of creation: Feb 2013
Date of revision:
Handle: RePEc:iie:pbrief:pb13-3

Contact details of provider:
Postal: 1750 Massachusetts Avenue, NW, Washington, DC 20036-1903
Phone: 202-328-9000
Fax: 202-659-3225
Email:
Web page: http://www.piie.com
More information through EDIRC

Related research

Keywords:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. William R. Cline, 2011. "Sustainability of Greek Public Debt," Policy Briefs PB11-15, Peterson Institute for International Economics.
  2. William R. Cline, 2012. "Sovereign Debt Sustainability in Italy and Spain: A Probabilistic Approach," Working Paper Series WP12-12, Peterson Institute for International Economics.
  3. Zsolt Darvas, 2012. "The Greek debt trap: an escape plan," Policy Contributions 759, Bruegel.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:iie:pbrief:pb13-3. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peterson Institute webmaster).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.