This proposal is for a conversion of the existing dated 'debt' liabilities into a modern form of the undated credit instruments ('stock') which pre-date modern banking by hundreds, if not thousands of years.
The Proposal
Firstly, Greece would dedicate an agreed proportion of tax income to long term funding. Let us say 5% of Greek tax income and an initial allocation of €12bn.
Greece then issues stock (undated credit instruments) at a discount, each of which is returnable in payment for €1.00 of Greece's taxes. This new issuance would then be allocated between the different creditors in a way reflecting the repayment date and interest rate of Greek liabilities.
From then on Greece would use 5% of its tax income to buy back this stock for cancellation, and the faster the growth of Greek GDP and taxation, the faster would be the rate of return of the stock.Pieria
Chris Cook
