Basic maths about the Greek bailout plan

Population: about 11 million
GDP about $333 billion = 251 billion €
GDP per capita: $30k = 22k€

Bailout estimates: 
IMF chief Strauss-Kahn indeed told German policymakers that they might need EUR120-130bn over three years

So let's take the low end of the estimate: 120 billion. It means that each Greek national would need to pay 11,000€ to bailout their country, or that the debt per capita would raise by 11,000€. That said, 11k€ represents of 50% of the GDP per capita.

Does that bailout make it any more sustainable for the Greeks to repay their debt? Can you call it a bailout at all, given that it's just impossible to get the money back, forget even the interests?

No comments: