> Existing debt would be paid off with the expedient of default and currency devaluation, just as other countries have historically done.
All current debts are held in EUR or other foreign currencies. Currency devaluation won't help with the existing debt. I doubt a single creditor would accept exchanging EUR denominated debts to New Drachme.
> I can't imagine that is a very hard problem to solve.
Even the greek finance minister considers that a major roadblock.
> As I added in my edit, Greece has a primary budget surplus. There would be no ongoing deficit.
Greece had a primary surplus, it's tethering on the edge of not having a surplus any more. Greece desperately needs money to invest and kick-start its economy. And then there's still the IMF debt and the IMF always wants and gets its money. Even Argentina treated the IMF debts preferential. Who would step up and cover that?
All current debts are held in EUR or other foreign currencies. Currency devaluation won't help with the existing debt. I doubt a single creditor would accept exchanging EUR denominated debts to New Drachme.
> I can't imagine that is a very hard problem to solve.
Even the greek finance minister considers that a major roadblock.
> As I added in my edit, Greece has a primary budget surplus. There would be no ongoing deficit.
Greece had a primary surplus, it's tethering on the edge of not having a surplus any more. Greece desperately needs money to invest and kick-start its economy. And then there's still the IMF debt and the IMF always wants and gets its money. Even Argentina treated the IMF debts preferential. Who would step up and cover that?