Germany’s Economy Minister brought up a new term in Greece’s economic future. Philipp Roesler spoke of a Greek “orderly Default” and quite some people have been asking “what is this?”
An orderly default is something quite simple, it is a controlled bankruptcy!
The most simplest definition I found in wikipedia
Orderly defaults
In times of acute insolvency crises, it can be advisable for regulators and lenders to preemptively engineer the methodic restructuring of a nation’s public debt- also called “orderly default” or “controlled default”.[4][5] Experts who favor this approach to solve a national debt crisis typically argue that a delay in organising an orderly default would wind up hurting lenders and neighboring countries even more.[6]
Good luck and have a nice week 🙂
