This would wipe out the share capital of the ECB – the European Central Bank – and while its share capital would be replaced, it would be a huge embarrassment to the whole Euro area – any way you measure it – should debt problems in a country economically as small as Greece is – wipe out the share capital of the ECB.
It is like a bankrupt Tennessee should take out the US Federal Reserve System. Over there it would be unthinkable - over here it is not unlikely.
It might well be that Greece in reality is bankrupt but formally the debt likely will be restructured to carry no interest, be everlasting or whatever advanced bookkeeping they will come up with – to avoid making such write offs – and to spare Euro area tax payers from footing the bill already now.
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