Exact(2)
The snag is that spiraling costs could eventually make the debts unsustainable.
Monday's deal will involve the new €130bn bailout and an agreement that Greece's private sector creditors take losses of about 70% on their investments, but some analysts believe that even this will not be enough to make the debts sustainable.
Similar(58)
And up to $7 billion of synergies make the debt worthwhile.
The thinking is that would drive down yields and make the debt attractive to investors again.
"That is only going to make the debt to G.D.P. figures worse," he said.
"But now they have to make the debt situation sustainable beyond August.
The 50% target agreed on at October's EU summit is the minimum required to make the debt sustainable.
Nor would killing the partner make sense, he said, because that "doesn't make the debt go away".
Europe already has historically lower growth than the United States, and the likelihood that it will continue to slow will make the debt crisis worse.
But if the G.D.P. shrinks by 0.6 percent, as estimated by the Congressional Budget Office, it will make the debt burden heavier, not lighter.
The approach involves refinancing the loans through a Federal Direct Consolidation Loan, which may make the debt eligible for more flexible repayment options, he wrote this week on his Web site Fastweb.com.
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