Without an agreement for the lightening of the Greek debt, the amount owned will rise to 300% of the GNP. The above is claimed in a report for the International Monetary Fund about Greece according to Bloomberg. A new re-capitalization of the Greek Banks is also a possibility
The report claims that without an efficient re-profiling effort, the Greek national debt to GNP ratio will rise to 293.8% until 2060/
The same work suggests that the grece period for the payments towards the EFSF should be extended by at least 17 years, while the loans issued by the ESM should be extended by 6 years.
The proposals of the IMF in order to avoid such a development include a substantial re-profiling including:
-The extension of the maturity period of the Greek bonds until 2080
-Postponement of the interest payments on the European loans up to 2040
-The official interest on the loans should be limited to 1.5%
Regarding the banking sector, the fund's prediction is that the might need further recapitalization, up to 20bn euros, mainly due to the high number of non payable, private loans.