Topic: Greece needs wide debt relief to avoid permanent depression, thinktank warns (Read 851 times)

Cannot be told that Germany want to steal money to the Greece. I think that this is a big error. Cannot be used the word "steal" when someone want its money. Germany want its money. The debt of Greece is made even and mainly with the money of Germany. This is the first thing. The second is that Germany have not told never that is against the restructuring of the debt of the Greece. But first needed to do structural reforms in order that the restructuring of the debt don't go in vain. And then can be the restructuring of the debt. Not in the meaning to be cut it of but in others way.

They have already sold rights to the airport and all the money they are making from such activities, even their biggest asset: Tourism. So whatever money the country makes through tourism, they directly are used to pay off the debts caused by the country as to clear it but they are barely meeting their debt return requirements.

They do have beautiful islands as well. If they are able to maintain social order, tourists will keep coming in. The problem is when budget cuts and other austerity measures lead to protests. Law and order problems scare tourists away.

I don't think they really have the authority to leave the eurozone because that would be defaulting and claiming you're insolvent to pay. Eurozone is not just giving out billions to Greece because they are foolish, but because they have decided to screw Greece with maximum loan repayments. Failure of that would lead to sale of lands and other assets which will make Greece nonexistent.

It doesn't take a think-tank of experts to concluded that this is indeed the case. The problem is, you can't leave you eurozone without a backup plan. I don't think Tsipras and their team are competent enough to leave the eurozone and survive for long at this point. They need to think about it before taking that drastic ultimate step.

greece is and will always be a money sink. tax payers are always the victim of the billions that the european union pump into greece. let greece fall, it will hurt at the beginning, but later were better off.

The "National Institute of Economic and Social Research"  lies deep in the heart of fiat mordor and a large fraction of it's members believe virtual currencies infinitely counterfeitable and redeemable for pictures of the queen represent the totality of their purpose.  These poor folks need all the help they can get.  I would like to personally call on all my friends and colleagues in Greece to pool resources for these folks who are more than likely in a permanent depression. 

The biggest problem they will be facing tourism wise is the upkeep of the attractions.. They have no money for repairs and stuff, and one point it will scare tourists away.

They certainly won't get it. Greece has been a money sink for years, and is more of a burden on the EU than a helper, even when its economy was better. I'm not sure if I buy into this "permanent depression" buisness thought, I've always been under the impression that things can get at least slightly better.

They aint going to get that 95 billion dollars to keep themself floating..here.

Whats going to happen is what most seen already coming a mile away. Which is their phase of depression, and will eventually pass after 5 years or more depending on the constant tourism being cheap to visit greece since I dont see other avenues where they can get their money from.

 It  is very good analysys.Everybody know about it,USA istalking about it,even IMF
but it will not happen becouse of iron Germany.Germany will find for it
Thay are intersted in debt raising,austerity and steal from Greece whatever is possible

Greece’s economy will suffer fresh damage from the austerity measures demanded by its creditors and will remain stuck in permanent depression unless it receives substantial debt relief, one of the UK’s leading thinktanks has warned.

The National Institute of Economic and Social Research said the increases in VAT reluctantly accepted by the Syriza-led coalition in Athens in exchange for a new bail out will result in a 1% fall in national output in 2016.
In its quarterly analysis of the state of the global economy, NIESR said that by the time the Greek economy stops contracting in the middle of next year, gross domestic product would be 30% lower than at the start of the crisis in 2010 and 7% lower than when the country joined the single currency in 2001.

The report was published following a second day of heavy selling of bank shares on the Athens stock market. On Monday five shares comprising the banking index – National Bank of Greece, Alpha Bank, Piraeus Bank, Attica Bank and Eurobank – suffered double-digit losses, including three over the 30% limit that triggered an automatic trading suspension. The same group again suffered losses near the 30% level on Tuesday, with trading in Piraeus Bank shares suspended.

However, after falling by a sixth on Monday, the main Greek stock market index had a steadier day as it posted a decline of just over 1%.

Banks have been hit hard by a combination of a poorly performing economy, deposit flight, the rising number of non-performing loans and the capital controls introduced by the Greek government in late June. Shares in banks have lost half their value in the past two days and two thirds of their value since Syriza’s general election victory in January.

Read more: http://www.theguardian.com/business/2015/aug/05/niesr-warns-on-further-greek-austerity