How did Greece manipulate its debt accounts?

Posted on 22. fév, 2010 by Jean Jacques Ohana in Weekly Focus

It has recently been revealed that Greece gamed the European Commission rule by maintaining artificially its Debt to GDP ratio below 60% for several years. In 2001, when Greece joined the single currency zone, it issued more than 10 Billions USD debt denominated in dollar and yen. It contracted a cross currency swap with Goldman [...]

Sovereign solvency risk and financial stability

Posted on 31. jan, 2010 by Jean Jacques Ohana in Weekly Focus

Since the banking system collapsed in September 2008, private and corporate debts have been replaced by public debt. Since then, sovereign solvency risk has become investors’ major concern, provoking successive dramatic surges in government interest rates: Greece, Portugal and Spain… After the latter countries, which country will be next to be downgraded? The risk concerns [...]