Greece bonds

Eurozone Crisis – Greece Relieved with a 5 Billion Loan

Good news hit the markets as fast as bad news and this is what happened with the recent announcement that Greece managed to secure another EUR 5 billion loan these days via a public auction. Not great, but critical news were these. Without the new bonds issue, Greece would have defaulted the next week’s repayments.
Unfortunately, the story is far from over. The Eurozone decision makers have failed to reach an agreement on how to tackle Greece’s huge debt. Some minister’s proposal to cap the public debt at 120% of the country’s GDP was strongly opposed by other countries (mostly the Nordics), especially because this would mean a haircut on the loans. Borrowers never want to lose money. Read More »Eurozone Crisis – Greece Relieved with a 5 Billion Loan