4/15/11
4:52 AM
Announced early Friday morning, Greece plans to unveil new austerity measures soon and further elaborate on what they are doing to pay back their debt. There has been a lot of talk recently that Greece may default on its loans and not be able to pay back its debt. In response to all this talk investors of Greek government debt asked for a record high 13% return on its loans on Thursday. Greece needs to lower its budget deficit from 10% to 1% by 2015, which will require a savings of 23 billion Euros or 33 billion USD in the next 3 and ½ years. The bonds investors gave Greece have at this point become IOU’s and the rising interest rates on them is evidence that investors are losing faith in Greece’s ability to repay them. There has been a lot of talk about whether or not Greece will need to renegotiate its debt, but at this time there are no talks underway about reconstructing it. In order for Greece to qualify for the 110 billion Euros it received from the European Union and the International Monetary Fund last year it must raise 50 billion Euros by 2015.
http://www.bbc.co.uk/news/business-13090685
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