Greece is not likely to be able to pay its debts, meaning the twice bailed-out member of the euro zone will have to restructure about $240 billion of sovereign debt, European Union officials told Reuters on Tuesday.
Although the officials, who are part of the so-called Troika that includes the European Central Bank (ECB) and the International Monetary Fund, won't finalize the results of their inspection of Greece's debt-choked economy until next month, their conclusions are already clear.
Prospects of euro zone members or the ECB being willing to bailout Greece yet again appear remote if not non-existent, especially since the Greek economy is expected contract by a massive 7 percent this year and Greek officials have not been able to make progress in fixing the three-year-old crisis.
Greece is hugely off track, one of the officials told Reuters. The situation just goes from bad to worse, and with it the debt ratio.