Today cabinet ministers in Greece approved new austerity measures to attempt to rescue the troubled economy. Details include:
- A €50-billion privatization drive was put into place to enable the country to keep receiving bailout funds.
- Last year, the country received €110-billion in rescue loans.
- The next €12-billion rescue loan is due in July.
- Eurozone goverments have said Greece will be cut off from aid if austerity measures aren’t followed.
- Without the rescue loan in July, Greece will be forced to default on its debts.
- Residents of Greece can expect €6.4-billion in spending cuts and tax hikes this year.
- Greece’s international creditors have criticized their slow progress on making reforms.
- It is likely Greece will still be locked out international bond markets next year.
For more details on the economic and political crisis in Greece, read the following articles:
- ECB’s Paradox on Greece
- Greece Default Not Expected in Immediate Future
- More on Greece: S&P downgrades, further bailout or restructure?
- How bad are the government debt problems in Eurozone? Will it affect investments in North America?
- Current problems in the Eurozone
- Facts about bailout of Greece
For your business and economic needs, contact the Winflow Financial Group at 1.800.956.6897.