...that would be the government.

Considering its probably the other countries and major financial institutions that are buying greek debt, its those bond holders getting a reprieve.

EU rules are somewhat different...in that they have a deficit ceiling for member countries (3%) and Greece is currently very close to 13% combined with the capitalization required to maintain parity within the currency. The worry is that Greece will have to drop out of the Euro consortium...which will be doomsday for them and will seriously undermine all the work the EU has done to have the Euro in the same league as the dollar.