A Lithuanian economist says that Greece's debts will have to be restructured as reforms and Brussels' assistance will not be enough for the financially-troubled country to get back on track.
Gitanas Nausėda
© DELFI / Šarūnas Mažeika

"I am sure that the issue of debt restructuring will come up as well. Without debt restructuring, it is like removing a mountain with a spoon. The creditors will have to deal with debt restructuring. Possibly, a write-down or an extension to the deadlines. This is necessary for Greece to start breathing easier and carry out reforms in easier circumstances," Gitanas Nausėda, who is an adviser to the president of SEB Bankas, told BNS on Monday.

Nausėda said that it was difficult to say how Greece would succeed in implementing the reforms and reviving its financial sector. In his opinion, the proposed reforms are tougher than those discussed earlier, because with banks closed, tougher measures are needed.

"Although the details have not been released, I understand that (the reform plan) is both tougher and broader than that discussed before the Greek referendum, and this is not surprising at all because after those weeks when its banking system was not functioning, Greece is in an even poorer financial situation, and the need for austerity and radical measures is higher than it was in late June," he said.

The economist believes that with the leaders of Greece, France, Germany and the European Council having reached a deal, an agreement with the remaining eurozone member states will be reached as well.

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