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Options
Governments borrow money by issuing bonds Bonds are also traded in Secondary markets Governments use two main options to repay debt
1. Revenues from taxes and state owned assets etc. 2. Issue more debt
Greece had misreported the country's official economic statistics to adopt Euro Borrowing at lower rates Excessive Spending . Huge military budget
Breach of Eurozone rules - The Stability and Growth Pact , requiring members to keep their deficit below 3 per cent of GDP
In 2010 Greeces deficit was 13.6 per cent
Why Cant Greece Print money ? Government failed to reform the economy
Investors Confidence Pushing other weaker economies such as Ireland and Portugal towards default Spain & Italy next..
Loss Of Investors Confidence due to week Euro Larger Financial Stakes In EU Effects on Financial Markets Global Recession
Greek government has started to cut the spending Increase in tax rates & government sector restructuring Orderly default & exit from Eurozone
Bailout By IMF (International Monetary Fund) Bailout By Euro Zone Bailout By Emerging Countries