Greece May Explore Markets to Reduce Debt in a Bad Economy

| July 8, 2010 | 0 Comments

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There have been some positive signs and stirrings of economic recovery in Greece lately, some signs indicate that Greece may even be turning the corner regarding its floundering economy. The status of the Mediterranean nation’s economy has been a topic of interest in the international community, but some indications have officials in Athens smiling.

Finance Minister George Papaconstantinou claimed amid speculation that the economy would shrink at a clip of 4% this year that such estimations are “overly pessimistic.” This is coming off of news that the economy shrank at a rate of 3% in the last quarter.

He also said that their target to tap into markets is in 2011, though he claims they can wait until 2012 to start using markets to work out their debt.

Euro leaders and the International Monetary Fund greenlit loans equaling $110 billion to Greece, who is attempting to lower their debt in order to make those loans valid. Greece’s debt last year was 13.6% of their GDP, which is more than four times the allowed limit for European Union members. While Greece is a little bit behind their targets for their revenue income targets, they are still ahead on their goal of spending cuts, said Papaconstantinou. The budget shortfall so far this year was only 4.9%, compared to the 5.8% of this time last year.

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Category: Business & Finance News, Featured News, Global News

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