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The Greek Debt Restructuring: An Autopsy

Author

Listed:
  • Jeromin Zettelmeyer

    (Peterson Institute for International Economics)

  • Christoph Trebesch

    (University of Munich)

  • Mitu Gulati

    (Duke University)

Abstract

The 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.

Suggested Citation

  • Jeromin Zettelmeyer & Christoph Trebesch & Mitu Gulati, 2013. "The Greek Debt Restructuring: An Autopsy," Working Paper Series WP13-8, Peterson Institute for International Economics.
  • Handle: RePEc:iie:wpaper:wp13-8
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    References listed on IDEAS

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    More about this item

    Keywords

    debt restructuring; eurozone crisis; financial crises; Greece; sovereign debt; sovereign default;
    All these keywords.

    JEL classification:

    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems

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