It’s a controversial statement for a country that has long been under the watchful eye of other European governments and the markets for letting its debts spiral out of control. Paul Kazarian, a long-time financier, is tirelessly trying to convince other investors but also the Greek government, to change the way they calculate debt.
His simple accounting trick could heal Greece’s long-suffering economy. Changing the perception of Greece’s debt situation, making it seem more sustainable, could make banks more willing to lend money to its struggling businesses, which in turn could lead them to hire more people and increase consumer demand.
Mr. Kazarian is hoping to get governments to convert their way of calculating debt to the International Public Sector Accounting Standards (IPSAS), which is similar to the International Financial Reporting Standards that are common for businesses. The idea is that debts and assets should calculated not by their nominal value, but rather by their market value.