Rather than sit down with their creditors before debts get out of hand, governments take desperate measures to avoid restructuring, such as issuing ruinously expensive short-term debt.
Unlike Greece, Portugal might be able to avoid restructuring its debt, but the agency said that the government's unsecured debt, or debt issued without the security of an underlying asset, would probably be subordinated to future loans from the mechanism.
In the 1980s, says Edward Morrison of Columbia law school, bankruptcy let entrenched managers at troubled firms avoid restructuring: for an example, he points to Eastern Airlines, which kept flying and wasting capital at cut-throat rates while in bankruptcy.
Albert P. Zabin Lexington, Mass., March 25 , 2009 To the Editor: Whatever the outcome of efforts to negotiate our way toward an improved health system, changes that avoid restructuring the way it's financed and delivered will fall woefully short of addressing its skyrocketing costs and ever-widening inequities in access to care.
No. Greece will be lucky to avoid restructuring its debt, and it will unquestionably pay a price for failing to deal with a huge inefficient public sector or an uncompetitive private sector.
In doing so, NTT can cut prices to squeeze out competitors or avoid painful restructuring.
Although successive governments have groomed PKO for sale by guaranteeing most of its old housing credits and shoring up its skimpy capital, the bank has avoided aggressive restructuring.
Eight months ago, when euro-zone governments and the IMF joined forces to rescue Greece, their determination to avoid immediate restructuring made sense.
It is necessary to work with what you have, rather than reorganise, in order to avoid a restructuring debate that becomes sterile and disabling.
It is seared by the experience of Greece, where (along with the European Union) it provided a giant bail-out in 2010 to avoid a restructuring that nonetheless took place in 2012.
