This broke a taboo on the restructuring of debt to multilateral agencies, and set up a framework for systematic debt reduction in return for overdue economic house-cleaning.
Greece was also in the spotlight, as European Central Bank executive board member Joerg Asmussen said the central bank won't take part in any potential debt restructuring of the debt-laden country.
It would be far better to recognise reality and start an orderly restructuring of Greek debt now.
Payouts from the International Monetary Fund (IMF) and a restructuring of foreign debt encouraged a fragile recovery.
Some think the government should start an orderly restructuring of its debt, to avoid a more chaotic default.
This could undermine Greek efforts to maintain the confidence of financial markets and avoid a forced restructuring of its debt.
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We need a restructuring of European debt, we need to see entitlement reform here in the U.S. and job creating incentives from policy makers.
It continued this week, with some politicians admitting that a hard restructuring of Greek debt was on the table, whilst others ruled out a default.
Euro-zone politicians, defying domestic opposition, have put together two enormous bailouts for the government and engineered an ambitious restructuring of its debt, all to keep Greece from dropping the euro.
Though his finance minister, Pedro Malan, in Washington this week denied any possibility of debt restructuring, Mr Cardoso on Wednesday saw two of the rebels, and more talks are likely though none are scheduled with Mr Franco.
On Monday, the company said it was looking for new financing and was negotiating with creditors in hopes of restructuring its debt.
The country is quite capable of restructuring this debt in such a way that bondholders eventually could be made whole--or almost whole--in the years ahead.
And what is likely to happen in any restructuring of the Greek debt is that the debt held by the official institutions does not suffer a haircut.
This is what you get when you half-talk about guaranteeing sovereign debt, and half-talk about private sector burden-sharing, and half-talk about the possibility of restructuring sovereign debt.
That suggests a restructuring of Greek sovereign debt - which would see a formal reduction in the value of that debt - is a more imminent prospect than official pronouncements by eurozone governments and EU officials would suggest.
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At issue right now is the very real possibility that Greece may be working toward restructuring some of its debt, which, in English, means that they will default on the current bonds and issue new ones.
These are banks that have holes in their balance sheets, because, thanks to the restructuring of Greek sovereign debt, they can't now expect to get back all of the money that they lent to the government.
That would include mortgage debt which is forgiven as a result of foreclosure, as well as debt restructuring, short sale or deed in lieu of foreclosure, so long as the debt is associated with the purchase, building or improvement of your main home and even if that debt is considered recourse debt.
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Also if there was a debt restructuring in Cyprus their holders of the debt, largely banks and pension funds, would have had to have a capital injection from the European bail out fund.
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With the public debt ratio now over 122 percent and investors potentially concerned about the prospects of sovereign debt restructuring taking place if the debt ratio cannot be stabilized, the dramatic reduction in financing requirements over the next decade is helpful.
If Greece then refuses to run big surpluses, a second round of debt restructuring would beckon.
That makes it unacceptable to the European Central Bank (ECB), whose opposition to any form of debt restructuring borders on the pathological.
These countries will have to take the IMF medicine of debt restructuring and fiscal tightening that was meted out so often in previous emerging-market crises.
Knowing this may influence the decision about whether the EU and IMF should require Greek bond holders to share in the pain with some form of debt restructuring, re-profiling or default.
Now you can convert, like we do for corporate restructuring, some of that debt into equity if you reduce the face value and then you make the creditor effectively a shareholder in the house by giving them the upside to warrants.
According to PwC, the CEOs in Europe were the least confident of short term revenue growth due to the ongoing debt crisis and restructuring of whole societies, getting used to lower benefits.
An absence of progress on Greece's debt-restructuring deal raised investors' anxiety, and the lack of a deal fanned fears that the region's debt crisis will spread.
There was a near-consensus in favour of restructuring Greece's debt.
Yet Portugal is almost certain to go the way of restructuring, and senior debt-holders across the border could also take unprecedented haircuts, which represents potential losses on their investments.
Shut out of the international financial markets, the cash-strapped government was forced to seek financial help after Cypriot banks suffered huge losses as a result of the restructuring of Greece's sovereign debt.
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