Source: BBC, consilium.europa.eu
For those interested in the Greek Economic crises that’s been running for years has seen recent negotiations create a small ‘breakthrough’ in their debt reliefs.
The BBC have stated that ”Greece has agreed a deal to unlock a further 10.3bn euros ($11.5bn; £7.8bn) in loans from its international creditors, after talks in Brussels.”
”Eurozone finance ministers also agreed on debt relief for Greece, extending the repayment period and capping interest rates.”
”Greece needed this tranche of cash to meet debt repayments due in July.”
”The Greek government owes its creditors more than €300bn – about 180% of its annual economic output (GDP).”
What does this deal mean?
The BBC state further in the article that ”The International Monetary Fund (IMF) has been at odds with the Eurogroup of eurozone finance ministers for months over the issue of debt relief for Greece.”
”The IMF considers debt relief essential, but Germany in particular was opposed.”
”Now that a deal has been reached, the IMF will consider contributing to the bailout.”
”The 19 ministers said the deal had been made possible by Greece’s economic reforms and called it a ‘breakthrough’.”
Wednesday’s deal does not reduce the amount Greece will have to repay. Instead, debt relief will be phased in from 2018, after Germany’s general election late next year. As such, the deal is being seen by many as a compromise intended to buy time.
What’s YOUR view of this new ‘breakthrough’ deal?
Will it see Greek debts decline overtime? Will it work? Can the IMF alone help to save the greek economy? What future reforms will need to occur to eventually decrease Greek debts?
Check out this BBC article here called: Will greek debt deal really change anything? It helps describe the Greek Economic issues in further detail and what the consequences of this deal potentially are to help structure your views better!
Comment below YOUR views on the Greek Economic Crises and YOUR suggestions of how to alleviate it