“If you don’t want to call it default or bankruptcy, call it a restructuring under pressure, but it’s going to happen,” Roubini told the Athens newspaper.
Roubini’s prediction goes against official claims, which Finance Minister Giorgos Papaconstantinou recently made on CNBC.
More from the Roubini interview:
Roubini said the best-case scenario for Greece would be “the stabilisation of Greece’s public debt at 148 per cent of GDP.”
“In my opinion this is just not viable. It is impossible for Greece to survive with a debt reaching 150 per cent of output… a controlled restructuring of the debt will be required,” the professor told Kathimerini. “It has happened so many times before. Nobody believes that it will not also happen in Greece’s case,” Roubini added. Several countries, including Ukraine, Pakistan and Uruguay, have been obliged to restructure their debt due to the looming threat of bankruptcy, the professor remarked.