Saturday, June 3, 2017

Lara Merling — Greece has a Private Debt Crisis and We Can Blame the Troika

The Greek public debt debacle and the bailout received by the government from the European Central Bank (ECB), the European Commission (EC), and the International Monetary Fund (IMF) – referred to collectively as the “troika” – has been making headlines for years. 
However, very little attention has been paid to the debt crisis in the Greek private sector. An alarmingly high portion of private sector borrowers is behind on their debt payments, and the Greek banking system currently has one of the highest ratios of delinquent loans in the European Union....
Greece’s accession to the Eurozone was followed by a largely ignored, rapid, and unsustainable build-up in private sector debt. Once the Greek government was forced to impose severe austerity measures and the economy collapsed, the private debt crisis followed. Now, the large ratio of delinquent loans held by Greek banks is adding to the factors hampering economic growth. For Greece to recover, its private debt problems need to urgently be addressed with an approach that offers relief to both borrowers and lenders....
The Minskys
Greece has a Private Debt Crisis and We Can Blame the Troika
Lara Merling

1 comment:

Kristjan said...

Can't do anything about that since Greece doesn't have printing presses any more, they were destroyed. All the good leftist politicians can do now is to go through 50 year economic depression. There is not much that can be done, sorry. Unless you want simpletons (James Galbraith used the word about Brexit) to take over. It is time to stop blamig Troika or neoliberalism unless these leftists can come up with anything better than Venezuela.