ECB's stance on Greece is 'peculiar' | Bangkok Post: opinion

THE EUROZONE CRISIS

Nothing illustrates better the political crosscurrents, special interests and shortsighted economics now at play in Europe than the debate over the restructuring of Greece's sovereign debt.

Germany insists on a deep restructuring _ at least a 50% "haircut" for bondholders _ whereas the European Central Bank insists that any debt restructuring must be voluntary.

In the old days (think of Latin America's debt crisis in the 1980s) one could get creditors, mostly large banks, into a small room and hammer out a deal, aided by some cajoling or even arm-twisting by governments and regulators eager for things to go smoothly. But with the advent of debt securitisation, creditors have become far more numerous and include hedge funds and other investors over whom regulators and governments have little sway.