Some of the media are happily pumping the Eurozone line that the Greek problem is sorted, and that now the second bailout of Euro130BN has been agreed (after a marathon 13 hour session of finance ministers) we can all move on.
Not quite, aside from the fact that the Greek economy is sunk and that borrowing money to pay off debt will not resolve this problem; the private bondholders (sans ECB, which protected itself by sleight of hand last week) will have to take a NPV haircut of 74%.
Institute for International Finance (IIF) crisis resolution official Jean Lemierre was only told of the size of the haircut this morning.
The "party line" is that the creditors will voluntarily accept his haircut. The reality is that there will be a few who refuse to have their "assets" further written down, as such Greece will have to enforce the Collective Action Clauses (CAC) and force the recalcitrant bondholders to accept the 74% haircut (this of course is a default event).
Aside form that, all Greece has to do is to reduce its debt from 160%to 120.5% of GDP in 2020.
This is not over, by any stretch of the imagination.
Here is the Sustainability Analysis by the Troika dated 15 February (as you can see, this will not work).
Greek Sustainability Proposal