This
article is about the ongoing debt crisis in Greece. The Prime Minister of Greece Lucas Papademos
was meeting with private creditors from the Institute of International France
in hopes of reaching an agreement to suffer a loss of money in order to lighten
the debt load of Greece. This deal would knock down the debt by 100 billion
euros, which would cancel Greek debt by 50 percent. A lot of European governments
are closely watching this especially Germany because they are currently paying
most of Greece’s rescue loans. The
article said that the talks are going well and the atmosphere is good. The supporting countries are just going over
finances to make sure that Greece is on track to be able to meet the needs of
the reform. So basically other countries are having to take over Greece’s debt
even though private creditors are making the deal because it affects all the
Eurozone countries.
The
significance of this event is that a deal needs to be met in order for Greece
to get more bailout money to keep the country from having to default on it’s
debt. This could mean a huge blow to the
already struggling world economy and would send markets going crazy. If the debt is decreased Greece will be able
to receive a second bailout of 130 billion euros which would go to stabilize
banks and to loans. If an agreement is not met Greece won’t be able to pay a
14.5 million euro bond repayment that is due in March. This could send the
world markets crashing.
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