You forget that greece does not have to pay back any debt or interrest till 2020.
We are talking about additional money/debt here that greece wants.
I am pretty sure that it would be possible to negotiate a debt cut if greece can prove that they can get their shit together. They do seem to have other priorities at the moment, tough.
That's nonsense. It owes $500 million in a few weeks to IMF, and the obligations keep coming after that. They require continual renewal.
Without debt forgiveness or some kind of GDP-linked scheme, they will slide even further into debt over the next 5 years.
An analogous thing happened multiple times in Africa, too: kleptocrats took out wopping IMF loans for impractical infrastructure projects, stole most of the money, the infrastructure rots, and then over the next few decades the country would end up paying 3 or 4 times the original principal back to the rich Western creditors, having gained nothing, and often having to engage in those euphemistic "structural reforms" that actually end up killing people (you know, if your mosquito net budget goes to loan repayments instead, children die of malaria).
The situation with Greece is very close. The contrast between debtor and creditor is not as stark, but the dynamics are the same.
We are talking about additional money/debt here that greece wants.
I am pretty sure that it would be possible to negotiate a debt cut if greece can prove that they can get their shit together. They do seem to have other priorities at the moment, tough.