Greece’s current situation When the Greek deb
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Posted On: 12/26/2016 3:51:41 PM
Greece’s current situation
When the Greek debt crisis broke in 2010, Athens turned to the EU for help. Assistance to Greece to this day has been contingent on Athens making domestically unpopular reforms. Nearly seven years, 13 austerity packages, and three bailouts (worth a running total of $366 billion) later, the Greek economy is still struggling.
The debt burden now registers at about 177 percent of GDP. Non-performing loans total $119 billion, accounting for 45 percent of the country’s loans. Unemployment is still around 23 percent, and about three-fourths of unemployed people have been jobless for at least a year.
A successful bailout review would have opened two additional means through which Athens could access more credit. Athens was looking to use a successful review to justify the inclusion of Greek bonds in the EU’s quantitative easing program next year. Such a move would better position Greece to return to bond markets when its austerity package ends in mid-2018. The review would also pave the way for International Monetary Fund participation in bailouts with Greece.
http://www.forbes.com/sites/johnmauldin/2016/...216aa7e1bb
When the Greek debt crisis broke in 2010, Athens turned to the EU for help. Assistance to Greece to this day has been contingent on Athens making domestically unpopular reforms. Nearly seven years, 13 austerity packages, and three bailouts (worth a running total of $366 billion) later, the Greek economy is still struggling.
The debt burden now registers at about 177 percent of GDP. Non-performing loans total $119 billion, accounting for 45 percent of the country’s loans. Unemployment is still around 23 percent, and about three-fourths of unemployed people have been jobless for at least a year.
A successful bailout review would have opened two additional means through which Athens could access more credit. Athens was looking to use a successful review to justify the inclusion of Greek bonds in the EU’s quantitative easing program next year. Such a move would better position Greece to return to bond markets when its austerity package ends in mid-2018. The review would also pave the way for International Monetary Fund participation in bailouts with Greece.
http://www.forbes.com/sites/johnmauldin/2016/...216aa7e1bb
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