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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsIMF finds $11bn black hole in Greek finances and warns of new write-off
The International Monetary Fund warned the eurozone yesterday that it may be forced to write off a chunk of Greece's debt after identifying an $11bn black hole in the finances of the recession-stricken country.
In its regular update on the programme of financial austerity and structural change agreed to by Athens in return for financial help, the Washington-based IMF said weak growth and a sluggish pace of reform had opened up a funding gap in both 2014 and 2015.
The IMF, which is struggling to persuade developing countries to back Greece's bailout, said "debt sustainability" continued to be a risk.
The commitment of Greece's European partners to provide relief as needed to keep debt on the programmed path remains, therefore, a critical part of the programme.
http://www.theguardian.com/world/2013/jul/31/imf-greece-11bn-write-off
davidpdx
(22,000 posts)The debt crisis in Europe is one of the possible reasons the EU could fall apart. The UK has been talking about pulling out. That doesn't lend much confidence in the union's survival.
Fumesucker
(45,851 posts)That's barely a rounding error in global finance these days.
Waiting For Everyman
(9,385 posts)how insolvent Greece would be if all the CDSs and similar fictional paper were written off?
I'd bet that black hole leads directly to some big bank's fraudinating pockets.
dipsydoodle
(42,239 posts)would require Greece to declare itself bankrupt, leave the Euro and the EU and then just get on with it having made themselves effectively credit proof - they'd become reliant on international aid. Out of the EU their population could experience difficulty in migrating. A side issue could also be that the hit German taxpayers would take would probably prevent Germany from ever again helping to bail anyone out.