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Temporary exit terms are very bad for Greece. They have to give E50B in assets to the EU as a collateral - this is to cover the Greek Debts. So the temporary Grexit does not absolve Greece of its indebtedness. Thus in the Five years of temporary Grexit, they have to produce a surplus of E50B to buy back those assets - close to an impossibility.
the texts that I saw was that the 50 billion euro collateral posting was for the option to stay in the euro, The "timeout" version just said that the EU would help on the transition (which is what Greece needs).
Regardless of the option taken, Greece is never going to repay its creditors (barring some form of inflation that wipes out the real value of the debt). Therefore, debt relief is of secondary importance, in my view. Once Greece is out of the euro, whether it pays back its debts is a pretty open question.
Brian, I think you are right on that. I well could have misread a confused reporter's statement. I think They will get a deal through, with the temporary exit option. Then, Tsipras will have to get that toxic deal past the Parliament. I don't think that he will be able to do that. But you never know. Let us see. It is getting harder to get a picture of what is happening, and how the cards are being played behind the screen. Tsipras got a real water boarding today. Let us see what happens back in Athens.
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Temporary exit terms are very bad for Greece. They have to give E50B in assets to the EU as a collateral - this is to cover the Greek Debts. So the temporary Grexit does not absolve Greece of its indebtedness. Thus in the Five years of temporary Grexit, they have to produce a surplus of E50B to buy back those assets - close to an impossibility.
the texts that I saw was that the 50 billion euro collateral posting was for the option to stay in the euro, The "timeout" version just said that the EU would help on the transition (which is what Greece needs).
Regardless of the option taken, Greece is never going to repay its creditors (barring some form of inflation that wipes out the real value of the debt). Therefore, debt relief is of secondary importance, in my view. Once Greece is out of the euro, whether it pays back its debts is a pretty open question.
Brian,
I think you are right on that. I well could have misread a confused reporter's statement. I think They will get a deal through, with the temporary exit option. Then, Tsipras will have to get that toxic deal past the Parliament. I don't think that he will be able to do that. But you never know. Let us see. It is getting harder to get a picture of what is happening, and how the cards are being played behind the screen. Tsipras got a real water boarding today. Let us see what happens back in Athens.
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