CNBC.comIn the aftermath of the financial crisis in 2009, the so-called “Greek depression” widened Greek government bond spreads and infected global markets in fear of a Greek government default and a Greek exit from the European Union. The appealing option of ignoring the root cause of the Greek depression – lack of growth prospect and too much debt burden – has created a Greek-style deja vu every time Greece’s debt obligations became due, in 2009, 2010, 2012, and 2015. Germany will push back strongly on any haircuts on Greek debt. The IMF’s blog described a way for Europe to embrace the realities of Greece’s current and future financial situation. Growth is the main problem that has led to a lack of faith in debt sustainability.

Source: Forbes March 04, 2017 16:00 UTC