Greece is buried in the local problems of the economy

Greece will have to negotiate with bondholders or extension of their treatment, or reduction in payment that will bring investors to losses.

In brief: Stabilization Plan amount to almost $ 1 trillion. Developed by the EU and the IMF, is intended to allow Greece to stay afloat for several years, for which it should significantly reduce costs and to financial reforms.

Prime Minister of Greece George Papandreou said Friday the country is experiencing shortage of competitiveness. “We inherited a horrible mess in the fiscal sector. Mismanaging Greek Economy” – he said. According to the Prime Minister, at the moment the goal is to reduce the budget deficit to below 3% of GDP by 2014.

“But by 2010 the budget deficit rejuvenate the country will be reduced to 8,1% of GDP” – said Papandreou. The Prime Minister also urged the EU to create a stabilization fund on an ongoing basis. Financial markets are currently very volatile, as the assistance provided by Greece, the European Union and the International Monetary Fund (IMF), gives the country a breathing space, experts say. Restructuring the debt is essentially a default. According to rating agency Standard & Poor’s, in case of default of Greece on the debt, bondholders will get only 30-50% of their investment.

Igor Tringlers
2010-06-12 13:06, Economics.

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