Topic: What Next for Greece? Loan Averts Crisis but Debt Still Huge (Read 852 times)

None of the mainstream parties were in favor of the Grexit (perhaps with the exception of the ultra-left KKE and the ultra-right Golden Dawn). The Popular Unity party failed to cross the threshold. Syriza was rather interested in getting more favorable terms from the Eurozone, and they used the threat of Grexit quite effectively.

Don't know that there was enough public support for grexit last year. There was for less austerity. But for leaving the euro? Syriza promised to stay in the euro and reduce austerity and was voted into office. When they were pressured to impose austerity measures and the new elections were called syriza won again. Greeks could have voted for parties that would leave the euro then. But didn't.

Don't worry about the EU. The European Union is about to collapse, with or without the Brexit. Even before the migrant influx, the finances were under severe pressure due to the Eastern European parasite nations leaching off the money. Now with millions of migrants who are not interested in working to be taken care of, the system is at a breaking point.

Not only leave the euro but leave the EU. EU is a shithouse, a jewish project to create the One World Government.

Greece needs to leave the euro. There was public support for this last year, but their government chickened out. All that has done is make the pain much worse when they actually have to exit a few years down the line.

I still remember when Greece want to declare bankruptcy so many riot happens, I think loan is the most logical move to make now, a lot of country with huge debt still can stand until now
I think in this case Greece doesnt has many choice to save the country, i think loan is the right move

You are right, but you can't make this look like its Erdog's or Merkel's fault. It is Greece's own fault. Nobody put a gun to those people's head and told them to "steal everything". They are just corrupt. They stole from their own country and for the moment they got away without a penalty.

The next for Greece is nationalization of banks.

Greece fell in to the trap set by Angela Merkel and her boyfriend Recep Tayyip Erdoğan. Merkel is not giving any free money to Greece. On the other hand, the German and Turkish bankers are looting the Greek natural resources. Most of the money provided by IMF and the other agencies were stolen by the Greek oligarchs, who quickly moved it to London and Istanbul.

Europe has no other choice than forgiving the debts of Greece and Greece has no other choice than leaving the union. (Actually they can stay and use Merkel's free money but they may get bored and go "This is Sparta!" at some point)

If EU loses Greece, it won't stop there. The others will follow. (Like Spain, Italy, Portugal) Soon there won't be any EU. Germany and France will do whatever it takes to prevent this.

 Economist Roger Bootle: "Grexit" Is the Only Solution for Greece http://www.truth-out.org/news/item/29526-economist-roger-bootle-grexit-is-the-only-solution-for-greece

innocent people will pay debts because of problems of corruption and tax evasion

Grexit is the solution for Greece.

Greece gone die.

Not easy to clears a crisis problem, the first they must fight with corruption and tax evasion are the big problems that seem to be ignored in this crisis.

IMF wants others to forgive debt so they can lend Greece more. Who are the morons running the place? gnaw IMF!

Greece have very serious debt problem and it's not easy to solve.
They have already reduced pensions, increased taxes, and accepted much more as lenders demanded of them but still it seems this is not enough.
The final solution will probably have to include debt forgiveness but the question is if the Germans will accept such solution.
If not, probably Greece will not be able to repay all its debts, and the crisis will deepen and prolong.
Germany and Merkel are the key for the solution of this problem.

Greece problem should be solved at the earliest. Cant see people having difficult time for so long

EU has bigger problems than Greece now with the Brexit.

I thought there in Europe so debt is every one's in the EU debt..So give them more money scrap the debt and let them build there country again..
Now if this is not the out come then what's the point in being in the EU i thought the people wanted to be as 1 big Europe...well Greece it's debt is the EU's DEBT..  PAY UP EU..And scrap Greece debt..After all it's only numbers on a computer look at the amount I can type for greece..

9,0000000000000000000000000000000000000000000000000000000000000000000000,000000000000000000000000000000000000000

Here you go Greece spend that.. interest free.. Just next time we will have to charge you 5% on our pretend money..
That's all it takes from the powers that be..

 It's all but official: this summer's Greek crisis has been called off.

After an 11-hour meeting lasting into the early hours Wednesday, European officials agreed to unfreeze more rescue loans and to consider ways to lighten Greece's debt load. That means Greece stands to get 10.3 billion euros ($11.5 billion) from its bailout loan package from European governments and the International Monetary Fund.

The money means Greece can make debt payments coming due in July. There won't be fears of a disastrous default and forced exit from the euro currency, as there were before Greece sealed a similar deal in July, 2015.

The country, however, is still far from safe financially or economically, meaning its crisis could yet flare up and once again cause jitters for the global economy.

Here's a look at what's next for the country.

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Q: Is Greece out of danger of defaulting and leaving the euro?

A: For the next few months, yes. There are a few more checks to be made on Greece's reforms before the money can be transferred. But the deal seems mostly done.

For the longer term, no.

The IMF and the eurozone governments, led by Germany, remain at odds over how much austerity Greece needs to do. In particular, Germany and the European states want Greece to run a budget surplus — when not counting debt interest payments — of 3.5 percent of annual GDP. That's a huge figure. And it could stifle economic growth because it would give the government little space to spend on the economy.

The European creditors want such a surplus to make sure Greece pays off its debts. But the IMF says the figure is unrealistic and wants a lower target, more like 1.5 percent of GDP.

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Q: Was that all they disagree on?

A: No, they also disagree on how to lighten Greece's debt load.

The IMF says Greece's debt, which is currently 180 percent of GDP, is "unsustainable." It wants European creditors to agree to lower interest rates on past rescue loans they gave Greece, and to push out their repayment dates.

The Europeans agree debt relief is possible. But Wednesday's deal puts off discussion of concrete terms for debt relief until 2018.

Germany, the most influential of the governments that loaned Greece money, is reluctant to go to its parliament for approval of more breaks for Greece ahead of national elections in October 2017.

http://www.nytimes.com/aponline/2016/05/25/world/europe/ap-eu-greece-bailout-whats-next-.html