Another Europe News

Greece avoids default, but for how long?

Published

10 months ago

March 27, 2024

euronews

http://www.euronews.com/ What has happening in Greece is the biggest restructuring of government debt in history.

It comes after a nerve-wracking week when it looked like Greece’s private creditors might not agree to the deal.

For a long time the investors who had lent Athens billions had haggled in meetings like this one with the finance minister but eventually accepted that if Greece went bankrupt they’d get nothing.

One hundred and seventy seven billion euros of loans will be exchanged for new ones with much lower face values, lower interest rates and longer maturities.

Nearly 86 percent of the bondholders accepted that and they will lose three quarters of the value of their investments.

Muchalis Massourakis, Chief Economist with Greece’s Alpha Bank was hopeful a turning point had been reached: “We are going to suffer a big haircut because of this debt restructuring, but at the same time, for us, it is very important — not the transaction per se — but the fact that this is the beginning of the restoration of confidence in the economy and this will bring back, let us say, the commercial banking business to the banks.”

!http://static.euronews.com/articles/178456/0903-greece-debt-swap-graphic.jpg!

Other analysts were not so confident that banks will want to risk lending money to the Athens government even in the long term and some are already predicting that Greece – with its economy in tatters – will start to run out of money again soon perhaps as early as the second half of this year.

Commerzbank economist Joerg Kraemer said: “The crisis is not over yet. The European Union has bought some time for Greece. But when Greece continues not to implement the promised reforms that it’s only a question of time until new problems will pop up. And especially in the second half of the year I see a probability of above 50 percent that the European Union is so frustrated that it stops releasing fresh money to Greece.”

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Related Topics:another avoids but crisis default,Economy euronews europe for Greece how long news

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7 Comments

@KOKIsuxKOK

March 27, 2024 at 7:11 am

I promise I will donate my back hair to the Germans in return for a debt write off, another bail out and those unpaid submarines!

This is pure Hellenic 100% Greekshmere wool. Nothing but the best comes out of this country!

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@jdhf983y4uhu

March 27, 2024 at 7:11 am

i thought the default was penned in for march 23rd. you can just google 'default 23rd march'

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@DimitriusG31

March 27, 2024 at 7:11 am

@TheMakGreat lmao shut up

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@tbyte007

March 27, 2024 at 7:11 am

@slonamu Exactly right. It's a pure default , but they don't have the balls to call it so 😉

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@slonamu

March 27, 2024 at 7:11 am

Euronews bending the facts again.
If you do not pay all the money you have agree to including interest- it is a default. Not paying 75% is bankruptcy. Full default coming very soon too, I am sure.

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@yannis43yannis

March 27, 2024 at 7:11 am

With unemployment at 20% (50% for the under 25 y.o., 25% for women), people (mostly immigrants not greeks) searching for something to eat in the garbage containers (and 250,000 "free" meals daily for the very poor, provided by the church), dozens of shops and small companies closing every day, we survive not from our income (we don't have jobs) but from our "fat" (money in the banks from past working years).
For foreigners there are ways to invest in Greece and make a profit.

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@LondonWalkability

March 27, 2024 at 7:11 am

what happens when a country defaults?

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