''Debt deal may compound Greece's woes''

THREE FALLACIES

"Let us examine the fallacies in each of the above three salient points of the deal. How are the ¤ 130 billion expected to be distributed among various parties? As can be seen from the graph, only 19 cents for every dollar goes into spending inside Greece, the rest gets paid to the creditors. So almost 80 per cent of the European taxpayers' money is being channelled to the banks and financial institutions.

Secondly, the plan to reduce the Greek debt burden from 160 per cent of GDP to 120 per cent of GDP without seriously whittling down the debt held with the private sector banks/creditors would prove to be a mirage."

from hindu business line...