Forex Europe News – Goldman Sachs states Greek debt restructuring is a risky strategy

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The global investment bank Goldman Sachs has characterized as a strategy for the Greek economy and banking industry characterized the possibility of restructuring the Greek debt. In an analysis report Goldman Sachs analysts have prepared which is entitled «European Views: Reflections on Greece and Portugal» the bank is distancing itself from views arguing that a restructuring of the Greek debt would clarify things. It also points out that this solution is a risky strategy at a time of great uncertainty about economic recovery while Greek banks are struggling to gain access to capital.

As noted, a possible restructuring would be a slap to many European banks that have held their Greek counterparts and will require the intervention of the European Central Bank, which will be required to correct the damage. According to Goldman Sachs, Greece exiting the euro is not something likely, as it would harm not only the country but the Eurozone also as whole. The consequences of such an action would have a long term negative effect in the economic and commercial outlook of Greece.