Even after billions in debt forgiveness and a massive second bailout, Greece still faces a debt to GDP ratio of at least 100 percent, Charles Dallara, managing director of the Institute for International Finance, told CNBC in an exclusive interview Monday.
The IIF, an organization representing hundreds of banks around the world, announced last week a private-sector financing offerfor Greek debt held by banks and other private lenders.
The offer is intended to reduce Greece’s debt burden, which currently stands at 140 percent, and is the highest in Europe.
The private-sector financing is part of a larger aid package announced by the European Union last week, which increased the amount of public-sector funds to Greece by 109 billion euro, gave the country more time to pay back its previous EU/International Monetary Fund loans, and lowered the interest rates on those loans.
Greece has more than 350 billion euro in loans, which it has struggled to pay. The country was struggling to make interest payments earlier in the summer.