The head of the Japonica Partners fund Paul Kazarian, who has invested 4 billion euros in Greek bonds, recently visited Athens and announced that the Greek public debts is currently sustainable!
The investor argued that while Greek debt is being presented as being 175% of the GDP, by using a different internationally-accepted statistical representation, Greece’s debt is reduced to 60% GDP, well bellow that of other European countries. According to Mr. Kazarian’s claims and calculations, the public debt of Ireland is 78% GDP, in Italy the debt is 112%, in Spain 63% and in Portugal 74%.
Additionally, Mr. Kazarian argued that the latest Greek reforms which saw part of the private debt being transferred to the public sector, has resulted in the average Greek bond maturity increasing to 17 years; this contrasts those of Italy, France, Ireland, Spain and Portugal, where the average age of maturity is under 7 years.
The international investor stressed that Greece offers “unique investment opportunities” and condemned the anachronistic and financially absurd methods in representing the financial reality in Greece. Should this illusion be shattered, Mr. Kazarian estimates that the cost of borrowing will drop considerably, which in turn will benefit the economy.
