|How are Euro area countries exposed to a Greece default|
|EFSF guaranteed exposure to Greece||Bilateral loans||Max. Loss on ECB exposure||In % of GDP|
|EUR bn||EUR bn||EUR bn#|
|*||exempted as under bailout|
|**||exempted by special arrangement|
|#||share of losses suffered by the ECB|
UBS,IMF, Bloomberg February 2015
Malta stands to be hit by about 2% of GDP in case of a Greek default. This is more than much richer Luxembourg, Netherlands, Belgium, Austria and Finland and much more than Cyprus, Ireland and Portugal who were exempted due to their being under balilout assistance themselves.
Now one can understand why it is in our interest that a fair compromise is reached with Greece which however does not involve any haircut or write-down.
This can be done. How?
Let us list the points that everybody seems to agree upon, or at least should agree upon, and around which some sort of compromise could possibly be built: