When is a default not a default?

Answer : When you write off half of the debt so that the borrower only pays half of it back!

As I have written before in this blog, the Greeks are canny buggers and the masters when it comes to brinksmanship. They know damn well that the other Euro zone conties can’t afford to let them go bankrupt, so all they have to do is keep presenting reasons why they can’t cough up and they know someone somewhere will come up with a workround – or fudge as we used to call it!

Apparently the Greek Prime Minister reckons that his country has ‘great potential’  and can see the way beyond it’s deep financial crisis. Well, yes. So can I. It’s called screw as much money as you can out of the Germans. After all, I know quite a few Greeks who still reckon they should still be paying for the last war…

Mr Papandreou added: ‘I can guarantee that Greece will live up to all its commitments.’ He promised that Greeks will ‘fight our way back to growth and prosperity’ and warned against heaping ‘only punishment and scorn’ on his compatriots. Punishment and scorn? Shurely not…

So the plan is to ‘inject further capital investment’ into Greece to encourage recovery and growth – or in other words give them more money that they can’t pay back. At the same time, in order to avoid a Greek default half of the outstanding debt will be written off.

If Greece was a British individual, this would be the equivalent of coming to a voluntary arrange with creditors in order to avoind declaring bankruptcy.

Dress it up any way you like, it’s still a default…

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One response to “When is a default not a default?

  1. Captain Haddock

    A Defaulter is always a Defaulter ..As a former Company Commander of mine (and all-round top bloke) used to be fond of saying .."March the guilty bastard in, Sarn't Major" …He was rarely wrong … šŸ˜‰