The planned 50 percent writedown of Greek government bonds held by private creditors as part of a debt swap won’t be enough to make the country’s debt sustainable, an adviser to German Finance Minister Wolfgang Schaeuble told To Vima in an interview.
The write down, which aims to lower Greece’s debt to 120 percent of gross domestic product in 2020, will have to be greater and shouldn’t be voluntary, Oxford University professor Clemens Fuest told the Athens-based newspaper.
Fuest said the danger that a euro area country may leave the common currency is existent and that would risk causing a chain reaction, according to the newspaper.
To contact the reporter on this story: Natalie Weeks in Athens at email@example.com
To contact the editor responsible for this story: Angela Cullen at firstname.lastname@example.org