Many discussions about Greece’s debt, which currently stands at about 175 per cent of gross domestic product, start from the presumption that it is unsustainable and cannot be repaid. The argument is highly questionable. First, sovereign states never repay their debt. They refinance it by issuing new debt. From this viewpoint, Greece doesn’t currently face serious problems, since its debt is largely held by official creditors, ie the European Financial Stability Facility (EFSF), and other eurozo

Source: blogs.ft.com

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