s of bail-out loans to help it get through the crisis.

View previous topic View next topic Go down

s of bail-out loans to help it get through the crisis.

Post by AjayBaji on Fri Jul 22, 2011 3:45 am

nding spree after it adopted the euro.

Public spending soared and public sector wages practically doubled in the past decade.

However, as the money flowed out of the government's coffers, tax income was hit because of widespread tax evasion.

When the global financial downturn hit, Greece was ill-prepared to cope.

Grow Lab
peacock bass fishing
It was given 110bn euros of bail-out loans to help it get through the crisis.

Why did Greece need another bail out so soon?

Greece received that original bail-out in May 2010.

The reason it had to be bailed out was that it had become too expensive for it to borrow money commercially.

It had debts that needed to be paid and as it couldn't afford to borrow money from financial markets to pay them, it turned to the European Union and the International Monetary Fund.

The idea was to give Greece time to sort out its economy so that the cost for it to borrow money commercially would come down.

AjayBaji
M-W Member +
M-W Member +

Posts : 73
Join date : 2011-07-08

View user profile

Back to top Go down

View previous topic View next topic Back to top

- Similar topics

 
Permissions in this forum:
You cannot reply to topics in this forum