Greece doesn't actually need any more bailouts (at least, it didn't until last week). They run a primary budget surplus, so all they need from the EU & IMF is some kind of debt restructuring so they can stop all debt payments for a few years while they pass the necessary reforms and their economy recovers. They also need a guarantee that the banks are safe by the ECB to restore confidence, but that doesn't cost any money.
The IMF released a report last week stating that in addition to substantial debt relief the Greeks need an additional bailout of EUR60 billion.
Both Varoufakis and Tsipras tweeted their agreement with the report. It seems pretty clear that Greece won't make it without another big bailout package.
"They run a primary budget surplus" if you don't count the payments on all the loans.
Sorry, but if I borrow a million dollars, build some business that generates profits which are less than the payments on the loan, it's not a surplus. It's called default.
> if you don't count the payments on all the loans.
That's the definition of primary surplus.
> but if I loan a million dollars, build some business that generates profits which are less than the payments on the loan, it's not a surplus
Greece does not get the loans now - that money is already gone. The key insight from the "primary surplus" is that a haircut would work, because Greece could be self-sufficient once the debt burden is gone.
It's semantics, at the end of the day Greece owes money, and you simply cherry-picked a term that doesn't contain that debt.
> The key insight from the "primary surplus" is that a haircut would work, because Greece could be self-sufficient once the debt burden is gone.
And so would my hypothetical business that can't even cover the monthly payments on the loan. If we magically erase the debt, just like that, I got a profitable business I can brag about.
> Greece does not get the loans now - that money is already gone
