With Greece finally implementing the biggest debt writedown in history and predictions the country’s debt is to decline more than previously expected, a solution to the crisis may seem in view, but some politicians disagree.
Greece has swapped $232.5 billion worth of privately-held bonds with new ones worth less than half their original value. The swap paves the way for the approval of the second international bailout without which the Greek government would have to announce default.
In the meantime Jean-Claude Juncker, the prime minister of Luxembourg and the chairman of the meetings of eurozone finance ministers, said that Greece’s debt is now expected to decline to 117 per cent of GDP by 2020, less than the 120 per cent that had previously been expected. Juncker noted that the new estimates appeared because of greater-than-expected voluntary participation in the writedown of Greece’s debt. Juncker’s somewhat optimistic outlook came at the end of a meeting of eurozone finance ministers in Brussels.