De Grauwe: IMF Greece Plan Approaches Total Debt Relief

The video discusses the ongoing negotiations for Greek debt relief, emphasizing the need for a long-term debt extension. It explores the implications of coupon rates in a negative interest rate environment and the substantial nature of the proposed debt relief. The role of the IMF is highlighted, including the potential consequences if they withdraw from the negotiations. The importance of semantics in negotiations, particularly with Germany, is also discussed.

What is the main challenge in achieving a long-term debt extension for Greece?

• Convincing France

• Convincing the United Kingdom

• Convincing Germany

• Convincing the United States

In a negative rate environment, what is the significance of a 1.5% coupon rate for Greek debt?

• It is made up

• It is a minor detail

• It is irrelevant

• It is highly significant

What does the IMF's proposed debt relief scheme imply?

• A complete debt relief

• A substantial but not total debt relief

• A minor debt relief

• No debt relief

What is the potential consequence if the IMF withdraws from the debt relief negotiations?

• It would finalize the plan

• It would change the credibility of the plan

• It would have no effect

• It would strengthen the plan

Why do the Germans avoid using the term 'debt relief'?

• To confuse other countries

• To maintain a positive image

• To avoid legal issues

• To sell the idea to their own population