Greece May Have Blown It Over Debt

Even if it survives the next three months teetering on the brink of bankruptcy,Greece may have blown its best chance of a long-term debt deal by alienating its euro zone partners when it most needed their support.

Prime Minister Alexis Tsipras’ leftist-led government has so thoroughly shattered creditors’ trust that solutions which might have been on offer a few weeks ago now seem out of reach.

With a public debt equivalent to 175 percent of economic output and an economy struggling to pull out of a six-year depression, Athens needs all the goodwill it can summon to ease the burden. It owes 80 percent of that debt to official lenders after private bondholders took a hefty writedown in 2012.

CNBC

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