lunes, 16 de mayo de 2011

A resurgence of the Greek drama?

Concern is rising in the international financial markets that the next iteration of the Greek rescue package may not be so much to creditors' liking as the first. Germany has opened up the possibility that bondholders should share the consequences of bad loans -- effectively, restructure the debt. It is not alone. The European central bank (ECB) advocates extending last year's loan program but in larger amounts. The IMF has played a mediating role between the two positions.

How effectively the IMF will play that role in the future is in question, following the arrest of the IMF's head, Dominique Strauss Kahn on sexual assault charges in New York. Has the  IMF's success in playing the role of mediator hinged more on Mr. Strauss Kahn's impressive political skills or on the gravitas of the institution he headed?

Wouldn't it be ironic if a single man's hormones changed the course of the Greek tragedy and the evolution of the international financial system over the short-term?

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