An article in the NY Times:
The article notes that Varoufarkis met with Lee C. Buchheit, "the dean of international debt lawyers"
- The get-together with Mr. Buchheit carried critical meaning, according to experts here
- After all, it was Mr. Buchheit who helped broker Greece's most recent debt refinancing, in 2012
- Even if Mr. Varoufakis and Mr. Buchheit did discuss some sort of a refinancing when they met on Friday, it is not certain that Mr. Buchheit would be able to wield much influence this time around
Although he has done some public-sector debt restructurings, Mr. Buchheit is better known for forcing private-sector bondholders to accept losses. In 2012, such bondholders held a majority of Greece's debt. This time, private investors own just 10 percent of Greece's bonds. Their taking "haircuts" would not provide much help. But for Mr. Varoufakis, the fact that the world's leading debt default lawyer will be advising him sends a powerful signal. Since becoming finance minister, Mr. Varoufakis has been wagering that Europe - and Chancellor Angela Merkel of Germany in particular - will not want to be blamed for forcing Greece into default and out of the eurozone. With the debt clock ticking, and Greece fast running out of cash, the coming weeks will reveal the wisdom of that bet.
More here (may be gated)
