#1 In the absence of such action, holders of the debt would be able to realise their capital without loss on maturity, leaving the costs of eventual restructuring to fall heavily on the IMF and the European Financial Stability Mechanism. It's all getting too intractable for words. There appears to be no workable solution that holds the whole thing together.
As the German Chancellor has said, the European view is that the IMF needs a European at the helm to look after Europe's interests and help the euro navigate its way through the storm. Mr Strauss-Kahn filled that role. He was a sort of cuckoo in the nest, crowding out all other concerns for the IMF. |