Greece Is Turning The Corner But Debt Restructuring Is Key
Sober Look | Oct 18, 2012 03:02AM ET
It looks like Greece is close to clinching the deal with the Troika for additional bailout funding.
Willem Buiter/FT : With the Greek general government expected to run a small primary surplus next year, there is hope of an economic rebirth, provided Greece gets serious about structural reform of its labour markets, its professions, its bloated public sector, its tax administration and public expenditure management.
Troika needs to make the restructuring (which may involve lowering rates, pushing out maturities, and possibly haircutting principal) a priority to assure that the situation no longer looks hopeless. Because currently at 175% debt to GDP ratio, it certainly does. If Greece is to stay in the union, restructuring of public debt is quite urgent and in the long run could be extremely constructive for Greece.
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