Nin-Hai Tseng on why Greece's budget surplus is a mirage. An excerpt:
Greece pays a discounted rate of interest as part of its bailout package, but even then the payments are still substantial because of the scale of its debt. It currently stands at 157% of GDP and is expected to rise to 171% by the end of this year, says David Beim, finance professor at Columbia University.
"The overall point is the Greek debt situation is completely unsustainable," says Beim, adding that a quicker way for Greece to return to prosperity is for the country follow in the paths of Brazil and Mexico in the 1980s when the countries defaulted on their debts.
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