What is the best of the worst scenarios? That is the question circulating among banks that were called to participate in the second Greek recovery, according to agreements reached by members of the Eurozone on July 21. A whopping 135 billion euros from the private sector will be directed toward a Greek bailout.
There will be an attempt to exchange old debt for new debt, that is to say, a chance to relieve 21% of the amount of debt that, according to an informant from the Wall Street Journal, is already being embraced by more than 90% of the participants based on calculations done by the Greek government.
Facing this situation, one more option was suggested yesterday by the Minister of Finance from Greece, Evangelos Venizelos. He recommended that a public debt restructuring that forgives 50% of bonds is not ruled out, according to the Greek daily newspaper Ta Nea.
Things sure have changed. And recent coronary-inducing days of trading sessions caused by rumors of ailing negotiations among Greece and its official creditors have brought about fear of payment defaults, a situation that increases the possibility of a controlled bankruptcy. In fact, when it was announced in June, agreement was hardly higher than 55% or 60%.
Rumors
In any case, yesterday Venizelos himself issued a communication in which he assured that whatever ?discussion, rumor, commentary or scenario? that distracts us from focusing on global objectives and the political obligations of Greece and other Eurozone countries and institutions is not positive for the situation that everyone fears.
