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Brexit and the City
15 March 2012

Lorenzo Bini Smaghi: Has Europe learnt from the mistakes made in Greek debt crisis?


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フィナンシャル・タイムズへの寄稿でビニ・スマギ氏は、市場は先週の「史上最大のソブリン債務再編」を比較的無難に乗り切った模様だという。だが、市場は既に次の犠牲者に焦点を当てている。ポルトガルの国債の利回りは、数か月前のギリシャ国債の利回りに近い水準にまで急上昇している。


European authorities have declared that Greece was unique and that there will be no more debt restructuring. Undoubtedly, though, they will be tested in the coming months. Two strategies are possible.

One is to behave in the same way as in the past. This means helplessly observing the widening of credit default swap spreads on sovereign bonds until it becomes obvious that the country in question will not be able to refinance itself in the markets; then publicly denying that restructuring is even an option, but privately considering involving private creditors and even discussing the details with some market participants; finally, hastily putting in place an additional package and asking the various countries’ parliaments for approval, which they might be willing to consider… but only in exchange for debt restructuring.

Unless this approach is quickly abandoned, Greece will turn out not to be an exception after all. Markets would turn to the next prey, like in Agatha Christie’s Ten Little Indians. Who will be next? Ireland? Spain? Italy? Where would the process stop?

Full article (FT subscription required)



© Financial Times


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