In his interview in ”Kathimerini” newspaper, Mr. Paul Kazarian, head of Japonica Partners, states that the debt is way below the reported 175 %.

As he explains, according to IPSAS (International Public Sector Accounting),GAAP version on public sector regulations, this is the number that comes out if you calculate the gross debt minus the country’s assets.

Should other international debts be counted this way, the result would be that the Greek debt is lower than those of other countries.

Yet, by using this Accounting Model, one can’t make the debt disappear.

The low debt level is derived, to a great extent, from the long-term time extension and the low interest rates, both provided by the creditors. This policy has been shaped through successive overhauls.

The current model measuring the Greek debt at 175% is determined by a European Convention and can be altered only through the European Council’s unanimous decision.

As Mr. Kazarian also stated, Greek Bonds have been the sole State Bonds Japonica has ever purchased. ” This is not what we came here to do. Our job here involves purchasing companies.” He already expressed his will to be a long-term Greek bonds investor.

According to ”Kathimerini”, Mr. Kazarian was recently in Frankfurt to conduct several contacts regarding the ”57%” penalty, as he calls it, hence the 57% ”haircut”. This is imposed by ECB to all banks which hold Greek bonds and wish to use it as collateral to borrow money.