RBS: The PIIGS Have No Choice But To Restructure Their Debt

Par Magnusson of RBS spoke with CNBC this morning about eurozone debt restructuring.

  • 1:05 No fundamental issue is solved in the eurozone. They can fund themselves, but how will they ever pay it back?
  • 1:45 There isn’t going to be any price convergence in bonds in the eurozone, possibly, ever again.
  • 2:05 How is Greece ever going to pay back with 11% interest rates with 100% debt to GDP?
  • 2:30 Dr Irwin Steltzer – People are nervous about the economies ability to pay this sort of debt burden back; there is no way forward without some sort of restructuring; the EU backup facility is not as large as everyone hoped.
  • 3:35 Dr Irwin Steltzer – Anyone who looks to the ratings agencies for some sort of guidance on things like the European Union bailout fund clearly doesn’t get it.
  • 4:20 The ECB does what it can. What has to be done is restructuring.


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