Sunday, April 11, 2010
EU set to offer Greece 30 billion euros in aid
Finance chiefs said Greece could receive as much as $40 billion (30 billion euros) at a 5 percent interest rate. It hasn't been unanimously decided yet but ministers have made the terms of a potential deal public. The IMF, will also lend another 10 billion euros in addition. The Prime Minister of Greece says that the country has not asked for a bailout. The situation in Greece is very grim. The interest rates on Greek government bonds has risen substantially and Greece needs to borrow a large amount of money in order to pay down maturing bonds and finance its budget deficit.
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I feel as if the 30 billion dollars in aid is basically a bailout. They are using the term "aid" instead of bailout, but getting 30 billion dollars makes me think of a bailout.
ReplyDeleteI find it quite fascinating that Greece have not asked for a bailout. I don't think they are capable of recovering without the aid of the EU or the IMF. As stated in the article, Greece needs 30 billion euros between now and the end of June to pay down maturing bonds and finance its budget deficit. The government may claim they have no need to use an EU/IMF safety net, but at the current state they stand, they may have no choice to.
ReplyDeleteSean, I will agree with you. 30 billion dollars is a hefty aid.
ReplyDeleteSean, I will agree with you on this; $30 billion is a hefty aid.
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