Sunday, April 11, 2010
Euro-Zone Nations Offer $40 Billion to Greece
Greece was offered up to €30 billion from the 16 nations that use the Euro, with low rates. Greece has not formally asked for help yet though, but this is available if they wish to ask for it. They would receive the money with 5% interest for three years. The IMF has also said that they will be willing to give financial support as well, but the amount has not been determined yet. All 16 nations are going to make contributions to Greece including those that are also having difficulties such as Spain, Portugal and Ireland. The European Commission president, José Manuel Barroso, said that this act “shows that the euro area is serious in doing what is necessary to secure financial stability.”
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2 comments:
The fact that these 16 nations are willing to loan such an immense amount of euros is a good indicator of their commitment to the euro. I think it shows how, even with not having your own currency/ monetary policies, with the help of other countries the euro can still be a financially stable currency in times of major crisis.
I think it is interesting that the country with the greatest opposition to providing aid for Greece is Germany, especially given the elections that will be happening in a month. Despite all of the politics that are involved with what to do about Greece, one thing is clear: because all of these countries are attached through a common currency, not helping each other hurts themselves too. Keeping Greece stable is important for the stability of the euro overall.
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