Currency and Financial Markets Economic Policy Foreign Trade and International Economic Relations Macroeconomics Public Finances and Financial Economics

GDP-linked bonds as a key for a sustainable recovery of the Greek economy

The Greek government yesterday proposed the transformation of part of its official debt into GDP-linked bonds. DIW Berlin has published a detailed study, which analyses how such an instrument might work. DIW Berlin considers this proposal as a constructive option to improve debt sustainability, which will ultimately foster a return to economic growth. Such a solution will help Greece accept ownership of its reform prorgramme – which is the key for a sustainable recovery of the economy. It is also the best option for the European and German taxpayers, as it improves the chances that Greece will be able to repay its debt, and thus to protect the interests of European taxpayers.

Leave a Reply

Your email address will not be published. Required fields are marked *