Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/88220
Authors: 
Smeets, Heinz-Dieter
Year of Publication: 
2010
Series/Report no.: 
ROME Discussion Paper Series 10-08
Abstract (Translated): 
This paper analyzes the Greek debt crisis. It is shown how the rescue package of 110 bn euro is shared among the IMF and the Euroarea-members in order to overcome the short-run problems. For the longer-run solution of the crisis several exit scenarios are presented and discussed: Under what conditions is the bail-out successful? Should Greece abandon the euro? Is a debt restructuring or default inevitable? In the end, the burden of adjustment has to be shared. Bondholders will lose some of their money by a haircut. Greek taxpayers will be paying higher taxes, retiring later, and taking cuts in public spending as do Euro-area taxpayers.
Subjects: 
Greek debt crisis
bail out
exit scenarios
debt restructuring
JEL: 
H60
H62
H63
H68
E58
Document Type: 
Working Paper

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