Greek Debt Causes Euro Plunge
IMF experts have been sent to Greece at the request of the local government to help with the massive debt that has economically stalled the country
. The IMF is intending to provide them with advice on how to manage Greece's out of control budget and how to stay in line with draconian cutbacks that are promised to the European Union. The IMF will also advise Greece on how to combat tax fraud, something that is considered a wide endemic to that country that has aided in crippling Greece.
By the end of March, the euro fell below the 1.34 dollar level as fresh doubts began to surface over the handling of the Greek debt crisis. The instability of the country has had a huge impact on the European economy, causing others to suffer in their wake. Greece, a member of the eurozone, said last week that they planned a fundraising operation in order to borrow the equivalent of 15.6 billion dollars, or 11.5 billion euros just to meet their most urgent needs for funds.
They are hoping to diversify its investor base so that means they will have to attract new emerging market funds as well as investors. Their goal is to raise the 11.5 billion euros by May to cover their bills until the end of the month, but the country will still need another 32.5 billion euros to pay its bills until the end of the year. Add to that 15% of tax income interest.
There was much anxiety and market unease prior to the arrival of the IMF experts who insist they have only come to offer advice. But the financial markets are uneasy due to the country not paying its bills and escaping a partial default on the old debt, which is currently due for repayment. All this while Greece currently seeks new loans. The pressure on Greece is becoming critical because they still have to redeem their old debt totalling about 20 billion euros by the end of May. The government has currently warned that some of the pension payments are not currently funded after June.
There remains a constant disagreement about the rates Greece should be charged for any help they receive. Germany in particular is very reluctant to offer help. They feel the only reason to plug more money into Greece's economy would be to help stop the plunge of the eurozone.
Greece does not have much time to figure things out and immediate help does not seem on the way. Lack of budget and financial planning can be detrimental to anyone, including entire countries. Finding help when you need it most can also prove challenging. If you are in a similar situation with bad credit and are in need of a loan, there are many private lending institutions that are available to help. They provide bad credit loans to clients with bad credit and offer no-obligation, on-line applications.
by: Molly Wider
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