Monday, May 3, 2010

News: Greek bailout arrives: Are €110 bn enough or would you like some more?

Finally, Greece short-term problems are solved. As you might know, Greece asked for a rescue package of €45 bn, €30 bn by Eurozone members and €15 of IMF. Even having to pay €300 bn to his investors, immediate repayment of €8'5 bn with May 19 as deadline, the government urge for an injection of money was high enough to go mad.

Luckily for Greek government, Greece signed today a rescue package of €110 bn ($147 bn) from Eurozone partners and IMF.

  • Conditions?
- Rescue package should be paid in 3 years

- 16 Eurozone members contribute with €80 bn, IMF lends €30

- Eurozone loans carry an interest rate of 5%

- IMF loans carry an interest rate of 3%

- Several austerity measures and high government spending cuts, that are currently creating trouble at the country.

Not being a condition by itself, but a help, Greek next steps should be save €30 bn between 2010 and 2013. Also, Greek government promised to freeze public-sector wages, raise 'sin' taxes as tobacco and alcohol, increase value added taxes, new taxes on business, raise retirement ages to 67 years (now the retirement age is 65 years) and cut pension payments.

Because these last actions, protestors marched yesterday against government actions and against European-IMF rescue package.

  • Impact on currencies
As Greek (and other European countries) economy are having trouble, Euro strength fades away. But also, other currencies are suffering. Australian dollar slipped to $0.92, Canadian dollar to C$1.016, and American dollar was down by 0.04 percent.

On the bright side, yen raised to ¥94,07.

Read more about Greek situation at our Greek debt crisis guide.

Related articles:

Special: Greek crisis Share

2 comentaris:

Tommy said...

Holy crap, that's a lot of money. And are they crazy? They KNOW they won't get that money back in three years, if EVER. This is really going to drag down international investment in Europe as a whole, not to mention weaken confidence in the long term stability of the Euro.

online pharmacy said...

This is a good notice for me because I think my investments are going to increase, that's perfect I'd like to get more information related to in order to confirm the fact.

Post a Comment