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May 8 (Bloomberg) -- European Union officials may require Greece to provide collateral for aid as policy makers struggle to prevent the euro area’s first sovereign debt restructuring, said a person with direct knowledge of the situation.All of this is a huge example of overthinking the problem. Greece borrowed too much money, more than they could pay back. They didn't borrow it so that they could turn a profit with it by building more industry, or if they did it was an abysmal failure and something which should have been recognized right away. Instead, they borrowed it to pay their people more than they were worth.
Expanding the 110 billion-euro ($158 billion) lifeline Greece received last year may mean that assets or revenue from asset sales are used to secure extra funds, the person said. Demanding collateral, an idea floated last year by Finland, may help avoid a political backlash against bailouts.
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