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    introduction to finance news

    Greece: Bailout Just Buys More Time

    23.02.12

    Analysts and economists aren’t exactly jumping for joy over the latest Greek bailout.

    Euro-zone finance leaders agreed to a $172.1 billion rescue deal for Greece. The country’s private creditors will take an even bigger loss than originally agreed upon, amounting to about a 53.5% haircut as opposed to the 50% agreed upon in October. The deal should help reduce Greece’s debt as a proportion of GDP to 120.5% by 2020 from about 164% currently.

    But doubts linger over whether Greece will be able to implement the appropriate austerity measures and additional terms that are needed to justify the bailout.


    Source: Wall Street Journal (blog)

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