Greece is very close to defaulting on its national debt and the shape of tis fiscal future should be decided in the upcoming days. The Greeks will most likely see an external intervention from the International Monetary Fund. Fitch has also downgraded Greece's debt to the lowest rating for potential investments, placing them very close to junk bonds.
3 comments:
I think IMF intervention is the best they can opt for, because going back to their pre-euro currency will create more problems than there already are, most definite being the fact that the previous currency was never strong enough to hold the investors in the country, so they would all start leaving at the first sign of the euro being dismissed.
Also some countries like Germany are not very happy about helping Greece out because they see it as taking the responsibility of their problems. Some counties say this will not even be a problem if Greece used its own currency.
I agree Eunice, Germany has been very reluctant with bailing out Greece and going back to the pre Euro system does not sound like a good solution either.
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