This is an excellent article published as a Harvard Business Review blog (HBR). It is well worth a read. Check it out!
via How to Help Cyprus Help Itself – Lenos Trigeorgis – Harvard Business Review.
Personally, I agree with the argument and cite this an an example of the radical thinking now required to get Cyprus back to growth (see my earlier blog entitled Cyprus needs a New Strategy but what are the Implications?). Students of Finance will recognize the bond having two parts:
- A basic loan interest rate based on international risk assessment/ rating agencies; and
- A warrant to reflect the potential upside from oil and gas revenues of circa Euro 20 Billion.