This is because of many "misconceptions and taboos that sustain it."
In a new Project Syndicate column, Soros writes that Greece has been a victim of such taboos and misconceptions.
"Greece, too, is a victim of its
creditors’ misconceptions and taboos. Everyone knows that it can never
pay back its debt, most of which is held by the official sector: the
ECB, eurozone member states, or the International Monetary Fund. After
undergoing a lot of pain and suffering, Greece is close to posting a
primary budget surplus. If the official sector could forgo repayment as
long as Greece meets the conditions imposed by the Troika (the ECB, the
European Commission, and the IMF), private capital would return and the
economy could recover rapidly.
"I can testify from personal experience
that investors would flock to Greece once the debt overhang was removed.
But the official sector cannot write down its debt, because that would
violate a number of taboos, particularly for the ECB."
Read more: http://www.businessinsider.com/soros-greece-is-a-victim-of-taboos-2013-10#ixzz2h7DqxKU7
