Sovereign solvency outlook post the July 21 Council announcements
Sovereign solvency outlook post the July 21 Council announcements
Greece Focus Notes
23 Σεπτεμβρίου 2011
In the report, we revisit the Greek fiscal sustainability issue and provide some further analysis on the July 21 EU Council announcements. Although the proposed new bailout package for Greece may not necessarily constitute a “silver bullet” solution for sovereign solvency, we realize that the market currently refuses to properly price in its beneficial impact on the government’s borrowing needs and debt dynamics. That is, despite increasing signs arguing in favor of a successful completion of the Greek PSI transaction.
