Wednesday, March 24, 2010
Germany, France Back IMF Aid to Greece
this article talks about how the international monetary fund and the euro regions two biggest economies (france and germany) have agreed to help greece lower the borrowing cost of money to help reduce the amount of debt greece has. the article also is talking about setting deficit regulations on countries to help prevent another incident like this from happening.
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Finally Greece is getting some help. Just yesterday I posted an article talking about how Greece is getting so desperate that they were thinking of leaving the euro.
ReplyDeleteBy allowing Greece to have lower borrowing limits they will be able to rebuild themselves without a total bailout. It is also smart that Germany has insisted a re-write to the rules, for if something like this happens to a country again.
There is an article posted just minutes ago in the NYTimes that talks about how the European Central Bank is going to continue to keep their limits on allowing short term loans at the low level they have been at in order to wether the economic crisis.
ReplyDeleteHowever, this worries me more than a bailout. Although Germany and France and the other prosperous European countries are upset by having to help out Greece, allowing more 'iffy' lending and having the Greek people buy bonds seems a more risky way to bail out Greece. Red flags were going off in my head, just something to watch for.....