Brattle senior advisor Nicholas Economides recently co-authored an opinion piece on the need for restructuring the debt of Greece and other EU countries, which was featured in the April 19th issue of Financial Times.
Dr. Economides, a Professor of Economics at New York University’s Stern School of Business, co-wrote the piece alongside fellow Stern professor Roy Smith. In their article, “Greece must meet its restructuring fate,” Dr. Economides and Professor Smith discuss how despite a €110 billion loan from neighboring European countries, as well as a change in government, Greece still needs debt restructuring to recover economically and regain economic prosperity. According to the authors, voluntary debt restructuring will reduce the total amount of outstanding debt, reduce the interest rate for refinancing, and lengthen the time Greece has to pay off its debt. Greece needs to take immediate steps to implement the voluntary restructuring.
The piece is available on the Financial Times website.