Baseline Troika scenario is 129% Greek debt-to-GDP

• A Troika debt sustainability analysis sees Greece’s debt-to-GDP at 129% in 2020.
• The analysis estimates 160% if recession deepens or reforms are not carried out
• Actions could bring debt to about 120% to GDP
• Restructuring accrued interest and lowering interst on bi-lateral loans could each shave 1.5 percentage points.
• Restructuring Eurozone central bank holdings could cut 3.5 pp
• ECB forgoing profits on its holdings could cut 5.5 pp.

The last one really gets me. How can they sit around the table and not insist that the ECB forgo its profits while asking bondholders to take a 70-75% haircut.