Without one, it could default on its debts, which could be the first step in a chain reaction that sees the country fall out of the euro currency union. [...] budget 'austerity' measures aim to reduce the budget deficit but have also hurt the economy by increasing unemployment, making Greeks poorer and reducing the amount of disposable income Greeks have. Creditors are insisting it should if it wants more loans, because they are worried that if Greece doesn't get its public finances back in shape, they'll never get their money back. If Greece can't pay its creditors, the government debt lenders use as collateral for their ECB loans would become worthless and the ECB could withdraw its support. [...] Greece and its creditors need to find a longer-term solution. Because most of Greece's debts consist of bailout loans, the country would be helped if its creditors agreed to make the terms of those loans easier — either by reducing the interest Greece has to pay on them or extending their repayment date.

Topics:  greeks   creditors   if greece   greece    greece   ecb   loans   country   debts   pay   reducing   budget   
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    Greece's current account deficit narrowed sharply in October from a year earlier to 383 million euros ($397.59 million), helped by robust tourism revenue and a further inflow of EU funds, data from ...
    12/19/2024 - 8:31 pm | View Link
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