OPINION

Why PSI deal must reached

It is vital that the efforts being made to reach a deal in the bond swap with the country?s private creditors, known as PSI, achieve their mission as this will restore liquidity to the market and bring stability to Greece as a whole.

If the private sector involvement plan fails to bear fruit, this country is bound to enter troubled waters and, yet again, come face to face with the very real possibility of bankruptcy.

Greece?s banks are obliged to participate in the voluntary haircut that is currently taking place with regard to the Greek state?s bonds.

This is perhaps an unfair situation for them to be in. However, it is certainly no more unfair that it is for private holders of Greek debt and anyone else who took on the risk of financing the state and is now being asked to pay the price.

Besides, it would be completely irrational for a Greek organization to go ahead and torpedo such a crucial effort as achieving private sector involvement.