Greek debt restructuring, Abaclat V. Argentina and investment treaty commitments: The impact of international investment agreements on the Greek default
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AbstractThe crisis in Greece emerged in 2007—2008, when it became obvious that Greece was not in a situation to meet its repayment obligations to its creditors. At that time, the budget deficit of Greece was in the range of 13 per cent of its gross domestic product (GDP).1 The stock of debt was equivalent to 115 per cent of the GDP.2 The debt problem was further compounded by the fact that nearly three-fourths of the government debt was held by foreign institutions, particularly foreign banks.3 This led Greece to a painful sovereign debt crisis. Such a scenario means that the Greek government's borrowing from domestic and external markets was in excess of its capacity to repay, resulting in loan defaults requiring rescheduling of loans or bailout packages from other countries or multilateral institutions.4 In 2008, Greece reached an agreement with the International Monetary Fund (IMF), the European Commission and the European Central Bank (ECB) on a rigorous programme to stabilize its economy with the support of a $145 billion financing package, against which the Greek government was required to implement fiscal measures, structural policies and financial sector reforms.5 Essential points of the reform package were: reducing the fiscal deficit to 3 per cent by 2014; pensions and wages to be reduced for three years; government entitlement programmes had to be curtailed and social security benefits cut. The German law firm GrÖpper-KÖpke announced in the wake of the reform package that it was preparing lawsuits against banks and the Greek state on behalf of holders of Greek bonds who have been forced to take part in the €206bn debt swap that occurred in 2012, the biggest sovereign restructuring in history. Such a move makes a lot of sense in the wake of the most recent developments.
All Author(s) ListChaisse J.
All Editor(s) Listed. by Chin Leng Lim and Bryan Mercurio.
Detailed descriptioned. by Chin Leng Lim and Bryan Mercurio.
Pages306 - 328
LanguagesEnglish-United Kingdom

Last updated on 2021-17-09 at 23:45