They will bear around 95% of the cost of reducing Greece's current debts, reckons Gabriel Sterne of Exotix, a bond broker.
The best option is to build on an idea put forward by Germany's Council of Economic Experts, to mutualise the current debts of all euro-zone economies above 60% of their GDP.
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The only way to assess a country's fiscal condition that is free of this problem is by forming the country's fiscal gap--the present value total of all the official debts and unofficial current and future spending obligations after netting out all the current and future taxes everyone is currently slated to pay.
Russia is in the lucky position of having relatively low debts and a big current-account surplus.
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Although many big emerging markets have built up foreign-exchange reserves and cut their external debts, in eastern Europe reserves have been flat, external debts have risen and current- account deficits have grown considerably in the past decade.
This program would induce the Greek economy to grow at an average annual real rate of 5% over the next 10 years, hold government spending to 0% real growth, and permit us to become current on all of our existing debts, while paying 4% interest.
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But if France now believes the answer to the current crisis is a monetary union where responsibility for debts are shared then it follows that a new set of political arrangements are required in which responsibility for economic decision-making is also shared.
Few other countries had the huge debts that made Hungary so wobbly, or the gaping current-account deficit that made Latvia so vulnerable.
Current law requires the Federal Helium Reserve operations be reauthorized after its debts are paid off, which is expected later this year.
Either Greece's relatively weak and small private sector has to be supercharged such that it starts generating current account surpluses that would allow the country to service the enormous debts - which seems unlikely to happen any time soon.
Sir Mervyn said that lending more money to Greece, the eurozone's current strategy, is only useful if it buys time to somehow make those debts affordable.
This program will identify delinquent debtors who are current or former Federal Government employees whose salaries or benefit payment may be offset if debts are not voluntarily repaid.
The relatively high current interest rate reflects the low expectations of lenders that the government will ever be able to repay its existing debts in full.
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