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Trade with Greece
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above 100%). The European banks' leverage
ratio stands at 30:1 – at least double than that of
US banks.
Will the debt crisis complete its circle at the point
where it started, or are we now entering the next
phase? I believe that the answer should be given
through another question: has the debt crisis ful-
filled its purpose?
This is a rather complex question, which, surely,
cannot be answered in these few pages. It is, and
will continue to be, the subject of long debates.
So, let's stick with the Greek economy. What hap-
pened with the PSI scheme?
The markets had
already been given
some respite much
earlier, when the ECB
launched its first three-
year long-term refi-
nancing operation
(LTRO), and then again
when the second
LTRO was announced.
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