Cyprus Mail
BusinessWorld

Rare growth-linked debt could work for Greece

Nobel prize-winner Joseph Stiglitz were among 18 eminent economists who recently wrote in a letter to the Financial Times that growth-linked debt relief should be part of a plan to help Greece recover

By John Geddie

Greece’s proposal to swap debt held by its euro zone creditors for bonds with payments linked to economic growth got a cool reception in European capitals this week, with one official calling it a “new trick” to a haircut.

It would be the first time official creditors signed up to an idea that is unpopular with private bondholders and only has a couple of private sector precedents. While some see the bonds as a reform incentive, others see a way to dodge paying up.

Related Posts

Ryanair records busiest month ever in June, load factor hits 95 per cent

Reuters News Service

No indication Danish mall shooting was ‘act of terror’ – police

Ukraine withdraws from battered Lysychansk city; Russia claims major victory

Reuters News Service

Video shows Ohio officers killed unarmed Black man in hail of bullets (V)

Metaverse starting to impact buying decisions

Kyriacos Nicolaou

Tens of thousands Sydney residents told to evacuate as rains flood suburbs (V)