Professor Ngaire Woods comments on Greeces sovereign debt restructuring deal

Ngaire Woods commented on Greeces sovereign debt restructuring in the World Business Report programme at BBC World Service (9 March).

Ngaire said, Until now, what people call the bailout has not been actually a bailout of Greece; it has been a bailout of the private creditors. It has been money given to Greece so that Greece can keep up its interest payments to its private creditors.

Ngaire explained that under the new debt restructuring deal, the private creditors for the first time have agreed to take some of the hit by swapping their debt bonds for bonds with longer maturity and lower interest rate.

Listen to the discussion here.