by Parminder Bahra
Wall Street Journal
December 14, 2011
Could Greece run out of money?
Although the Greek government has now met its obligations to receive the bailout money agreed to by the “troika” — the European Commission, European Central Bank and International Monetary Fund — it has still not been deposited. This means that theoretically, Greece is running out of money since it had said that it needed the money by November.
Meanwhile, the country is in a vicious cycle where the inspectors want more cuts, the cuts are adopted, the economy goes deeper into recession and the budget deficit goes higher.
And to compound matters, there are new expected figures which suggest that the 2011 budget deficit will be 10% rather than the 9% and more importantly that the economy will contract by 6 % —the fifth consecutive year of contraction.
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