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Osborne has in effect borrowed £2bn for Britain from China at five times the cost of public sector bonds.
During the financial crisis, the monetary authorities were called on to assume temporary emergency powers, including massive purchases of government and private sector bonds.
Most of the hedge fund money in Greece is invested in about 30 billion euros of freshly minted Greek government debt securities that emerged from the 2012 restructuring of private sector bonds.
Greek government officials said on Thursday that 97 percent of the investors holding its private sector bonds had agreed to the terms of a debt swap in which they would take a 75 percent loss in return for a new package of debt securities.
For the avoidance of confusion, its QE will be purchases of private sector bonds - what are known as asset backed securities - rather than government bonds.
The Pledge is based on the premise that public and private sector bonds financing long-term infrastructure and capital projects need to address and incorporate climate risk and impacts.
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The public sector bond option is cheaper unless the private scheme delivers 21% efficiency gains on investment, the reports says.
The organization estimates that private sector bond investors still have 200 billion euros at risk in the form of future interest payments by Greece.
Finally, a cost problem with Pay for Success is that, as critics contend, with private sector lenders involved, interest rates will tend to be higher than with public sector bond issuance.
In the social housing sector, bond issuance has increased significantly since the start of the financial crisis (32 issues since mid-2008, compared with an average of one or two a year previously).
"I don't foresee a PSI for Cyprus at all," said the American who negotiated the private sector bond swap that cut an estimated €107bn from Greece's staggering debt mountain last year.
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