nochmals zum Nachlesen....die Blaupause aus Mai 2010 zu den retroactiven collective action clauses: How to Restructure Greek Debt Lee C. Buchheit G. Mitu Gulati

How to Restructure Greek Debt

Lee C. Buchheit

Cleary Gottlieb Steen & Hamilton LLP - New York Office

G. Mitu Gulati

Duke University - School of Law


May 7, 2010


Abstract:     
Plan A for addressing the Greek debt crisis has taken the form of a €110 billion financial support package for Greece announced by the European Union and the International Monetary Fund on May 2, 2010. A significant part of that €110 billion, if and when it is disbursed, will be used to repay maturing Greek debt obligations, in full and on time. The success of Plan A is not inevitable; among other things, it will require the Greeks to accept - and to stick to - a harsh fiscal adjustment program for several years.

If Plan A does not prosper, what are the alternatives? And how quickly could a Plan B be mobilized and executed?

This paper outlines the elements of one possible Plan B, a restructuring of Greece’s roughly €300 billion of government debt. Prior sovereign debt restructurings provide considerable guidance for how such a restructuring might be shaped. But several key features of the Greek debt stock could make this operation significantly different from any previous sovereign debt workouts.

To be sure, a restructuring of Greek debt will not relieve the country from the painful prospect of significant fiscal adjustment, nor will it displace the need for financial support from the official sector. But it may change how some of those funds are spent (for example, backstopping the domestic banking system as opposed to paying off maturing debt in full).

This paper does not speculate about whether a restructuring of Greek debt will in fact become necessary or politically feasible. It focuses only on the how, not the whether or the when, of such a debt restructuring.
Number of Pages in PDF File: 14
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How to Restructure Greek Debt
Lee C. Buchheit
G. Mitu Gulati
Abstract
Plan A for addressing the Greek debt crisis has taken the form
of a €110 billion financial support package for Greece announced by the
European Union and the International Monetary Fund on May 2, 2010. A
significant part of that €110 billion, if and when it is disbursed, will be used to
repay maturing Greek debt obligations, in full and on time. The success of
Plan A is not inevitable; among other things, it will require the Greeks to
accept -- and to stick to -- a harsh fiscal adjustment program for several
years.
If Plan A does not prosper, what are the alternatives? And how
quickly could a Plan B be mobilized and executed?
This paper outlines the elements of one possible Plan B, a
restructuring of Greece’s roughly €300 billion of government debt. Prior
sovereign debt restructurings provide considerable guidance for how such a
restructuring might be shaped. But several key features of the Greek debt
stock could make this operation significantly different from any previous
sovereign debt workouts.
To be sure, a restructuring of Greek debt will not relieve the
country from the painful prospect of significant fiscal adjustment, nor will it
displace the need for financial support from the official sector. But it may
change how some of those funds are spent (for example, backstopping the
domestic banking system as opposed to paying off maturing debt in full).
This paper does not speculate about whether a restructuring of
Greek debt will in fact become necessary or politically feasible. It focuses
only on the how, not the whether or the when, of such a debt restructuring.

 

 

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