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Final meters before the announcement of the financial collapse of the Greek economy

11 April 2010 / 18:04:35  GRReporter
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Hours before the opening of the international financial markets on Monday morning the financial ministers of the Euro zone are gathering on a special long distance conference. There will be discussed the technical details of the rescue plan for Greece. After the events from last week the international markets show they have no confidence in the future of the Greek economy. The chances to resort to financial support become greater and greater. The financial analysts are explicit that if the spread indexes of the Greek government bonds with 10 years maturity term do not decrease next week Greece will have no choice but to ask for the financial support of the countries from the Euro zone and the International Monetary Fund.

The agreement from March 25th this year between the European countries and the IMF for granting joint financial subsidy to Greece in case it cannot finance itself through the international markets has to have the specific details after the special Sunday session in Brussels. The goal of the special meeting of Eurogroup is to provide the final version of the mechanism which has to be put into action in less then 48 hours after the filing of the official application for financial support.

According to unofficial information presented by the information agency Bloomberg, Germany has agreed to grant a loan to Greece with interest lower than the market ones contrary to the initial threat of the German chancellor Angela Merkel. “The proposition of Germany to provide financial support to Greece with interest rates equal to the market ones is a total nonsense,” commented the investment king George Soros and he continues: “In this way the whole idea of the support becomes unreasonable. If Greece wanted to finance itself at these prices it wouldn’t even as for support,” he explains. In relation to this the Chairman of the European central bank Jean Claud Trishe says that the interest rates on the credits granted will be calculated by the specialists and the financial ministers of the respective countries. With the view of fact that they would act as creditors they will be able to specify themselves the price of the granted loan which will definitely be lower than the one on the international markets. The forecasts about the value of the interest rates are ranging between 5% to 5,5% and the total value of the subsidy will exceed 30 billion euro.

Tags: EconomyMarketsEconomic crisis
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