The high debt burden of Greece causes headaches for European officials. In an interview for CNBC, Mary Pieterse-Bloem, global head of fixed income strategy at ABN AMBRO and teacher of Finance at Erasmus School of Economics, explains why debt forgiveness is not an easy solution.
The amount of oustanding bonds with private investors is very small compared to what the European Central Bank invested. 'Any debt relief would involve the European Central Bank and that smells very much like monetary financing which is not entirely approved by the (European Union's) Maastricht Treaty, so that's what the discussion is about.' According to Pieterse-Bloem.