Hard and soft OSI scenarios for the restructuring of Greek public debt - Stock and cash flow implications
Greece Focus Notes
26 January 2015
This note presents a technical study on the modalities of a number of debt relief packages for Greece, aiming to reduce the stock of public debt (either upfront or on an NPV basis) and to make the general government borrowing requirement more manageable on a multi-year basis. The OSI relief scenarios examined herein involve a number of hypothetical structures ranging from maturity extensions, lower interest costs and deferred interest payments to steep write offs of EU loans disbursed under both the first and the second programs. We emphasize that our analysis abstains from expressing a judgment as to the feasibility of (or the requirements for) any of these structures, concentrating merely on their potential stock and cash flow implications
