Small chance of success for Greek debt proposals: Experts

Experts agree that the Greek government's proposals to restructure the country's public debt are falling on deaf ears

Experts agree that the Greek government's proposals to restructure the country's public debt are falling on deaf ears

LONDON – The Greek government proposal to swap parts of its public debt for growth-linked bonds will fall on deaf ears, leading economists told The Anadolu Agency on Thursday.

“I will be shocked if they would agree on something this week. I don’t think Germany or the European Central Bank will accept it,” said Patrick Armstrong, chief investment officer at Plurimi Investment Managers in London.

“Certainly they will be very reluctant. What they fear is that all of a sudden Greece gets more power and becomes an example for Spain and all the others.”

Armstrong refers to the other so-called "peripheral" countries which are struggling to manage high debt levels. "I believe that Germany and the central bank would approach Greece’s proposal with the utmost caution," he added.  

A source from European Commission speaking on the condition of anonymity agreed: “From the talks in Brussels I can easily say that there is a growing skepticism towards Greece’s debt swap proposal.”

Germany has already stated that it will not agree to a restructuring of Greek debt. 

Sam Bowman, research director at the Adam Smith Institute, said he thought that Germany was maintaining its own negotiations with the European Central Bank. 

“It does seem like Germany is not willing to accept any changes in the existing plan. It seems to me that they are looking for Greece to default so that they can push through another deal. I do not understand why they are so unwilling to do anything.”

Greek Finance Minister Yanis Varoufakis is in Berlin on Thursday to negotiate changes in the current bailout conditions.

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