Saturday, April 24, 2010
Another bad day for Greece
The downgrading of Greece's bonds has created doubts whether Greece will be able to meet the deadline of May 19th 2010 to cast the 8.5 billion euros in borrowing. Moreover the credit rating agency has rated Greece as A3 which means it's at significant risk. The problem is a chain effect of what happened to Greece last year. The country had $43.2 billion budget deficits which was13.6 % of GDP. In such circumstance, the European Union combined with IMF proposed a rescue plan to help Greece get out the credit crisis. But the way it's bonds being downgraded it's highly likely they won't be able to meet the deadline which will only worsen the situaiton. Hope this articles provides a follow up of Greece's economic crisis.
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As mentioned in the article, Greece’s situation is severe and the future of it is difficult to predict. As for its promise of refinancing its huge debts by May 19th, the voices of doubts have never been stopped. I hope Greece will realize its plan and overcome the crisis. At least, according to a report I just read that the stocks are recovering and investors are regaining their confidence, the situation of Greece might be improved to a certain degree.
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