Forecast Greek debt levels per bailout plan
Hat Tip to Tyler Durden at Zero Hedge.
According to IMF projections, the GDP per Capita will reduce from 8.1% down to 2.6%. But, notice how the actual dollar value of debt increases. How messed up is that?
Much of the reduction comes from cost reductions. If they fail to materialize, Greece will go bankrupt. Another likely route for bankruptcy is an increase in their cost of debt. If their financing costs increase - either because bond yields increase across the board or Greek's risk premium increases - they will be unable to service their debt regardless of how much they cut.
Bear in mind that this worst case scenario wouldn't just affect Greece, but many EU countries, the US and Japan as well.