Two days of talks in Brussels ended with public concessions that the idea of "reprofiling" Greek debt, or voluntarily extending maturities without changing interest rates or the amount of the loan, was being contemplated, at least as a last resort.
Schäuble also said that he agreed with the International Monetary Fund that Greece's debt load is not sustainable, and he added that European leaders would discuss the possibility of "reprofiling" the country's debt, which was apparently a reference to extending loan maturities and changing repayment schedules.
Instead of reprofiling existing professions or workers, surely it makes sense to train practitioners appropriately for the context in which they will work.
In October, a little-noted but authoritative-sounding story in the Financial Times said the Treasury was working on schemes to "reprofile", or delay, some of the cuts if required.
But another, the "reprofiling" of bonds, is being actively considered.Under reprofiling, the Greek government would continue to pay coupons on bonds and to redeem them when they come due, but the maturity of each bond would be extended.
The terms used—"restructuring" or "reprofiling"—are fancy words for saying the money will not be paid back in full or on time.But what would they mean for credit default swaps (CDSs)?
"It's not a matter of if there's a reprofiling.
The prime minister of Luxembourg, Jean-Claude Juncker, this week proposed "reprofiling" Greek debt maturities as a way of limiting the losses of private bondholders.
The IMF thinks 1.5% is a more plausible figure and wants "reprofiling" of Greek debts – easing the overall burden and softening the interest rate.
According to the IMF forecast, Greece will be burdened with debts worth 250% of GDP by 2050 without "a substantial reprofiling" of the terms of loans.
