Days before referendum, Greek voters perplexed and undecided

The publication of the IMF draft debt sustainability analysis provides a detailed report into the true faith, ludicrous futility and nature of Angela Merkel's position. Debt amortization would be measured in decades. It beggars belief, seriously calling into question the whole ethos behind the Greek referendum.

The only option is for the Euro zone members to mutualise the debt. A third bailout in the guise of a 'loan' is arithmetically a non starter as Greece will never be solvent to sustain the debt liability. This analysis in an indictment to the absolute mismanagement of the single currency.

Greece: Preliminary Draft Debt Sustainability Analysis.....open the pdf link

http://www.imf.org/external/pubs/cat/longres.aspx?sk=43044.0

Thanks for the link to the report. It was certainly a bit of a surprise, or at least the timing was. I think Varoufakis is spot on when he say that Europe has been pretending that Greece simply has a liquidity problem when it really is a solvency problem.

The only option is for the Euro zone members to mutualise the debt.

But isn't that a really dangerous precedent to set? What is the worst that will happen if the creditors are forced to accept 100% of their losses? It would at least give them second thoughts about lending more to Italy, Spain and Portugal.

It's shame. The Government couldn't decide whether Greek should accept bill out condition or not. Current Greek Government should resign because the Prime Minister and Finance Minister were useless. PM was supposed to be made decision whether Greek should accept bill out condition imposed by its International creditors or not

Why he decides to go ahead with referendum and asked peoples to don't accept bill out condition? I don't get it at all. If you want money from others and then you have to accept the term and condition imposed by lenders. Otherwise Greek must declare bankruptcy. I'm sorry for Greek peoples but they have elected incompetent Government after all.

Hi M3M3M3 Yes, a dangerous precedent, a huge leap of faith, only achievable economically and politically with a complete dismantling and then reconstruction of every nook and cranny of EU policy and institution. Greece has brought Europe to a fork or cross road, federalism or break up, all or nothing, and it will mean all 28, Britain etc.

The IMF Greek draft, the subsequent default could (opinion) herald a cascade effect. Are the headline numbers for Portugal, Spain, Italy genuinely transparent?

This is where a degree of paranoia can set in. The Greek numbers are remarkable, unique in the respect that Greece was 'sacrificed' economically for the greater 'good', to preserve the overall economic integrity of northern Europe the so called powerhouse economies.

The present EU model is well past its sell buy date, both commission and parliament. Greece, Portugal, Spain , Italy, would have to summit to wholesale change for debt 'forgiveness' mutualisation to maintain financial and social cohesion. Too much history my aunt mused.

hmm.. I'm of the view that Greece could just simply default and stay in the Euro without any immediate need (however desirable) for structural reform of the Eurozone. The only consequence of this might be a return to 6-7%+ bond yields in Italy and Spain to accurately reflect the fact that when you buy these bonds, you are not actually buying 'Eurobonds' and so you have to price the risk accordingly because there is no EU bailout waiting for creditors when things go sour.

Greek prime minister Alexis Tsipras has been left clasping a poison challis. I am about a quarter way through the IMF report, it is a bombshell economically and politically. For Greece the deal has to secure debt sustainability no less. There is a scenario where Greece could default and remain in the Euro zone but it would be dependent on treaty interpretations.

Go get em It'sonlyrocky , burn them bond holders

This is a chance for Russia to start breaking apart the European Union. I am sure they can come up with the cash for a complete bailout. Also a chance for Russia to get Greece out of NATO as well. After all NATO did nothing when Turkey invaded Cyprus in 1974. What has the EU done for Greece?

This is a chance for Russia to start breaking apart the European Union. I am sure they can come up with the cash for a complete bailout

Greece might get future funding from other countries like Russia but they are unlikely to bailout its current debts. The previous bailouts mean that Greece now owes most of its debt directly to European institutions. Russia is unlikely to hand over 300 billion Euros (assuming they can) so that Greece can turn around and repay the EU in full. Russia is probably just telling Greece to default.

M3 so true why should Russia help the EU? I was thinking about after the default helping Greece. Of course it will come with a price.