They will default but it will be call debt restructure, A positive spin where bond holders take a severe hair cut. but with the interest the Greeks are paying you could wipe 30% and still come out in front. Greek 10 years are paying 20.55%, 2 YEAR Bonds are paying 23.5%. Anybody who takes the gamble with those sort of returns knows the risk. But even if you wiped 50% on the 10 year with the interest rate you would still come out 50% ahead. So when they talk debt forgiveness and wiping 50% off greek debt no one is losing out in the great paper shuffle.
