No. This will likely come back to haunt us once more. Some observations:
Details, Details ...
There are too few details on most of it. It will take some time to work these out as the markets are jubilant (for now) so this isn't perhaps the most important point. However, the devil often hides in the details so this could still all unravel. There are no details on the Greek bond swap, on which banks need capital.
Greece
So Greek bondholders are going to be 'invited' to a haircut of 50%, but in fact, that reduces Greece's debt by much less because the debt in official hands (ECB, EU, IMF) is going to take an "up to" 30 billion euro haircut (although as we understand it, the ECB will get full value at maturity, despite the fact that most will have been bought at large discounts to that).
Greek banks and pension funds, the biggest holders of Greek debt, take it on the chin and have to be recapitalized in some form, adding to the liabilities of the Greek state.
If things go according to plan, debt will be stabilized at 120% of GDP by 2020, hardly an exciting proposition, and things rarely go to plan. And the eurozone goes cap in hand here:
We call on the IMF to continue to contribute to the financing of the new Greek program. (Summit statement)
Other problems are present as well. You don't have to be a conspiracy theorist to realize that it is rather attractive for other weak countries to want similar debt reduction and the considerable 'hold-up' power they potentially have to achieve concessions.
Then there are problems with the voluntary nature of the haircut. What are the incentives for banks which have CDS insurance on Greek bonds on their books
