Greece is making another interest payment to the IMF to the tune of 750 million euros. This article (link here) reports that finance ministers are saying that the country is indeed making progress in beginning to pay its debts "but more work is needed." Greek finance minister Varoufakis was hoping that making interest payments would prompt the ECB to help Greek banks as "the liquidity issue is a terribly urgent issue." The article also reports that people aren't too sure where Greece is getting the money to make these interest payments, especially since it is sticking to its anti-austerity measures and the government has little to no money coming in. Varoufakis was also quoted as saying that Greece could be facing a crash crisis in as little as "a couple weeks."
Greece may be making payments, but it has a 117% debt-to-GDP ratio and European finance officials are saying that the payments are not enough to give Greece further bailouts. At this point we've discussed how a Grexit is inevitable, do you think that this could change based on Greece trying to pay back its debt and trying to act responsibly? Do you think Greece is wasting its time and money by postponing the inevitable exit from the EU and paying these interest payments?
I think it's awesome that Greece has at least made one payment! Good for them! But like the article states...no one is really sure where this money is coming from, especially when Greece isn't following austerity measures. But on the flip side of that, Varoufakis has stated that a "crash crisis" could be coming in "a couple weeks." Why now? If Greece is showing improvement, I would think that the citizens would be buoyed by this, hopefully improving economic outlook.
ReplyDeleteI also think it is good that Greece has made one payment this month. Greece really needs bailouts in order to pay creditors (this month and next month) and its workers despite its first "low" payment. Greece might have a "crash crisis" coming its way if another agreement is not made by the Eurozone to help out the country. An exit from the EU will definitively lead Greece to a new crisis, so a Grexit should not be a solution to the crisis in Greece.
ReplyDeleteI would be interested in finding out how Greece came up with the money. I think this is a step in the right direction for Greece if it wants to stay in the Eurozone. However, I do not see Greece miraculously making more of these payments in the future.
ReplyDeleteSince the EU is more beneficial to smaller countries like Greece, I think Greece is going to attempt to stay in the EU, and it seems that paying these interest payments is a signal of that. However, Greece has a long history full of political corruption and negligence in which their current government is a product of, so they have much more to figure out, because they were already disadvantaged in the first place.
ReplyDeleteI can agree that it is a step in the right direction for Greece to make this payment. It is suspicious how they cam up with this money, and interesting how people express that they don't know where it came from. I don't think Greece is "wasting its time" with such payments, however I don't see the country making any additional payments in the foreseeable future. With predictions of a crash crisis, I definitely don't see money being spent towards future payments.
ReplyDeleteI also think the Greece recent payment suggests that they are serious about working stay in the EU and paying their creators back. Yes, I think this is certainly a step in the right direction for the country. However, I am a bit skeptical that the Greek government will continue to make time payments and not full prey to any past mistakes that has caused their current economic state. It will be interesting to observe how it all turns out for the country of Greece and whether or not these step in the right direction for the country will be premature statement or not. I guess we will have to just want and see how it all unfolds.
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