It’s a fallacy that private creditors to Greece – taking a massive “haircut” on their investment as part of a debt-restructuring deal – are losing out while the official sector’s holdings are protected, Nouriel Roubini, chairman of Roubini Global Economics, wrote in the Financial Times.

The world-renowned economist argued Thursday that the Private Sector Involvement (PSI) deal – agreed to as part of Greece’s 130 billion euro ($172 billion) bailout – which sees private bond holders take losses of 53.3 percent, is actually a very good deal.

“The reality is that private creditors got a very sweet deal, while most actual and future losses have been transferred to the official creditors,” Roubini wrote.

Roubini argued that the official sector had begun its own form of debt restructuring some time ago.

“The official sector began restructuring its claims well before the private sector creditors. Maturities were lengthened and the interest rate on those loans reduced, repeatedly,” he wrote.

He said that this should not have been the case because “all official loans should have been treated as senior to private ones as they were all extended after the crisis struck.”

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