Greece Debt Crisis

Last night economists warned that it could cost £26billion for bailing out Greece. Yesterday it was concluded by a meeting of the G7 group of leading economies that EU have to take some actions to stop Greek debt crisis due to which euro is dragging down. On Friday euro fell to its lowest level against the dollar in ten months and also the value of pound rose sharply against the euro. Because of fears that the debt crisis will disrupt economic recovery, Global stock markets also fell down. According to The European Central Bank and the International Monetary Fund there is a need of 16billion pounds for the Athens for stabilizing the markets. But some experts said that by May the cost would come to 26 billion pounds (30 billion euros). The brokers warned that the coming years will be filled with the difficulties if such conditions of the market continues. Among the investors Portugal and Spain have also caused terror and there is a fear that this crisis will soon direct itself towards U.K. So the economies of the Europe that are under the attack of this crisis must have to take the precautionary measures like raising national saving, improving productivity and cutting government borrowing.

On Thursday the head of the multinational lending agency said that The International Monetary Fund is ready to solve the Greece debt crisis and it has been made privately cleared by the EU Commission that if necessary it would bail out the Greece. The debt of the Greece is increasing rapidly and it stands at about 13% of the national economy. German finance minister, Wolfgang Schaeuble said that Greece had to realize the fact that breaking the rules for a long period of time results in the payment of high price and due to this Greece would have to make the sacrifices.