In Greece, rising suicide rates, malaria and HIV are spreading in the middle of the crisis. These are tough challenges for hospitals that must make further cuts to meet demands from the IMF and the EU. There are vultures circling to buy up Greek debt, and they have no interest in settling. On 15 May, Greece paid 400m Euros to Dart Management. While Europe can write down Greece’s debt, private investors have no incentive to do so.
How can we stop this? European leaders could force them to hold to the agreed 50% umbrella on debt restructuring. But they chose not to do so. Instead they allow the robbery to continue.
P.S: In the meantime, the OECD warns about the danger of additional austerity measures as the economy is receding further and unemployment rapidly soaring.
P.S: In the meantime, the OECD warns about the danger of additional austerity measures as the economy is receding further and unemployment rapidly soaring.
From Nouriel Roubini's blog (May 30)
ReplyDeleteNouriel Roubini : THE Greek euro tragedy is reaching its final act: it is clear that either this year or next, Greece is highly likely to default on its debt and exit the euro zone. Postponing the exit until after next month’s election with a new government committed to a variant of the same failed policies will not restore growth and competitiveness. Greece is stuck in a vicious cycle of insolvency, lost competitiveness, external deficits and ever-deepening depression. The only way to stop it is to begin an orderly default and exit, co-ordinated and financed by the European Central Bank (ECB), the European Union, and the International Monetary Fund (the Troika), that minimises collateral damage to Greece and the rest of the euro zone.