Away from the headlines, I was wondering what is happening with the Greek “private sector involvement”. It seems that they will receive enough money to pay off their 7 billion EUR of debt coming due this year.
Greece has 22 billion coming due in the first quarter next year. Why would banks negotiate in good faith if they believe that the TROIKA will cave and take those bonds off their hands at par? There is a further 12 billion in the second quarter.
Will the TROIKA really keep taking bondholders out at par? Will the banks ever really take a haircut while the TROIKA takes them out at par?