The Manila Model
Plan Would Place Burden for Euro Rescue on Creditors
By Peter Müller and Christian Reiermann, Spiegel International
By Peter Müller and Christian Reiermann, Spiegel International
Excerpts:
"...the plan would call for Greece itself to raise the money for the operation by issuing new bonds. These would be guaranteed by the EFSF and would therefore have much better credit ratings than Athens could muster on its own. The Greek government's borrowing costs would be lower. Regardless which model is ultimately favored, Greece would be given additional leeway.
...During the mid-1980s, he worked at the International Monetary Fund (IMF) in Washington and Jakarta, where he developed a similar procedure for rescuing the Philippines from a financial emergency. The attempt succeeded and the government in Manila was able to reduce the country's debt burden with aid from IMF loans."
Follow the story at Spiegel International
"...the plan would call for Greece itself to raise the money for the operation by issuing new bonds. These would be guaranteed by the EFSF and would therefore have much better credit ratings than Athens could muster on its own. The Greek government's borrowing costs would be lower. Regardless which model is ultimately favored, Greece would be given additional leeway.
...During the mid-1980s, he worked at the International Monetary Fund (IMF) in Washington and Jakarta, where he developed a similar procedure for rescuing the Philippines from a financial emergency. The attempt succeeded and the government in Manila was able to reduce the country's debt burden with aid from IMF loans."
Follow the story at Spiegel International
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