8 Jul 2015
Greece headed debt relief, one way or other - BBH
FXStreet (Guatemala) - Analysts at Brown Brothers Harriman explained that Greece proved to be the unintended midwife of European-wide reforms and institutional capacity building in the 2010-2012 period.
Key Quotes:
"By accepting and trying to control Greece's debt relief, European officials could once again allow Greece to provide this vital function. The failure of individuals to service their debt no longer results in debtors' prison. Corporate failures have become routinized. European officials need to devise mechanisms to deal with sovereign debt problems short of ex-communication."
"Events have superseded the question of whether there should be debt relief for Greece. One way or another, Greece's debt burden will be lightened. It is either done on terms that European officials negotiate, or it is done in the unsentimental and uncompromising marketplace. Neither choice is pleasant or without pain. One builds on European integration, and, arguably, may even deepen the democratic roots. The other confirms the failure of leadership to preserve the integrity of the EMU for ultimately paltry sums and unleashes an unpredictable, and potentially disastrous, chain of events."
Key Quotes:
"By accepting and trying to control Greece's debt relief, European officials could once again allow Greece to provide this vital function. The failure of individuals to service their debt no longer results in debtors' prison. Corporate failures have become routinized. European officials need to devise mechanisms to deal with sovereign debt problems short of ex-communication."
"Events have superseded the question of whether there should be debt relief for Greece. One way or another, Greece's debt burden will be lightened. It is either done on terms that European officials negotiate, or it is done in the unsentimental and uncompromising marketplace. Neither choice is pleasant or without pain. One builds on European integration, and, arguably, may even deepen the democratic roots. The other confirms the failure of leadership to preserve the integrity of the EMU for ultimately paltry sums and unleashes an unpredictable, and potentially disastrous, chain of events."