>draconian austerity measures like those of the last few years, which caused a 25% drop in GDP and a rise of the debt/GDP ratio from 105% to 175%
Easy there. The austerity measures and the troika only came into play in 2010. After Greek government called EC-ECB-IMF because it could not solve its own crisis.
By 2010 (prior to Troika-imposed austerity), as a result of the Global Recession, Greece had already lost about 15% of its GDP and its debt had risen to about ~150% of its GDP.
It is extremely disingenuous to say that austerity caused a 25% drop in GDP or that it caused the debt/GDP ratio to go from 105% to 175%.
Re:Greeks Reject Bailout Terms
by Al-Khwarizmi on Sunday July 05, 2015 @05:37PM
(#9835122)
True that the troika only came into play in 2010, but the Greek governments of Karamanlis and Papandreou had been applying austerity packages themselves (although admittedly rather milder than the troika's) since the start of the recession.
> The IMF themselves have said that Greek debt is unsustainable and a significant haircut is needed (although their head Lagarde ignores their analysts).
This is actually not true. Based on the 2nd bailout terms from 2012 Greece doesn't have to pay interest on the loans until 2023 and does not have to start paying them back for the next 27 years.
Re:Greeks Reject Bailout Terms
by Al-Khwarizmi on Sunday July 05, 2015 @05:39PM
(#9835129)
The IMF themselves have said that Greek debt is unsustainable and a significant haircut is needed (although their head Lagarde ignores their analysts). Keeping with the dysfunctional austerity plans would only make the debt ball, and the eventual inevitable default, larger and larger. So even from a purely egoistic point of view, you should support the OXI.