Everyone knows that Greece is BANKRUPT and cannot at present envisage repaying the loans of 320 Billion Euros it owes to the EUROZONE, or even the interest on the Loans, in the foreseeable future.
The obvious question is "Why do the EUROZONE and its BANKERS not propose a MORATORIUM of 10, 15 or 20 years to Greece ?"
A moratorium which cancels the interest which is due and delays the repayment of the Debt, would give Greece the "breathing space" it needs to reorganise its Economy and to make it viable again.
Greece could then avoid the "Grexit", which no one really wants and then stay in the EUROZONE instead of having to adopt its former Drachma as its currency.
Mistakes were made in the past but this is not the time to hold a post mortem ! Germany and other creditors do not want to record a Financial loss but a "Provision for Exceptional Risk" should already have been booked in previous years ! This "Risk" is not an "Operating Risk" on normal operations and would not affect GNP calculations !
If Greece is forced to leave the EURO and EUROZONE it has no option but to make a hefty devaluation and revalue all its national liabilities. This would also entail a renouncement of the EUROZONE debts !
This would temporarily be a painful exercise for Greeks, but it would also create a painful precedent in the EUROZONE and it could have negative reverberations on the International Money Markets !
Would a MORATORIUM not have been a better solution for everyone concerned ? Would Tsipras and Greece not accept such a solution, even with some conditions ?
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