Euro zone grants S$11.2b lifeline to Greece

[sgd]

I read that Greece last year bought back some of their debt cheaply around less than 40cts to the dollar then wrote it off. That's how Argentina who defaulted in the 80's became solvent again in the 90's by buying back debt cheaply and writing it off, of course at the expense of bondholders.

So debt that has defaulted actually still has some value because it's cheap to retire for the issuer. And that's what a lot of people did by ploughing into Argentina defaulted debt and holding until today they known as holdouts or Vulture capitalists.

http://online.wsj.com/article/SB10001424...07070.html