The Greek Debt Restructuring: An Autopsy
AbstractThe Greek debt restructuring of 2012 stands out in the history of sovereign defaults. It achieved very large debt relief—over 50 percent of 2012 GDP—with minimal financial disruption, using a combination of new legal techniques, exceptionally large cash incentives, and official sector pressure on key creditors. But it did so at a cost. The timing and design of the restructuring left money on the table from the perspective of Greece, created a large risk for European taxpayers, and set precedents—particularly in its very generous treatment of holdout creditors—that are likely to make future debt restructurings in Europe more difficult.
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Bibliographic InfoPaper provided by Peterson Institute for International Economics in its series Working Paper Series with number WP13-8.
Date of creation: Aug 2013
Date of revision:
debt restructuring; eurozone crisis; financial crises; Greece; sovereign debt; sovereign default;
Other versions of this item:
- Gulati, Mitu & Trebesch, Christoph & Zettelmeyer, Jeromin, 2013. "The Greek Debt Restructuring: An Autopsy," CEPR Discussion Papers 9577, C.E.P.R. Discussion Papers.
- Jeromin Zettelmeyer & Christoph Trebesch & Mitu Gulati, 2013. "The Greek Debt Restructuring: An Autopsy," CESifo Working Paper Series 4333, CESifo Group Munich.
- F34 - International Economics - - International Finance - - - International Lending and Debt Problems
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