Greek Deal- An Important Affair To Check Out-3u8547

Currency-Trading Greek is the burning issue of the past few days Everybody is closely watching the developments on the Greek deal. It will have repercussions on both the sides- up or down on the markets. Currencies like Euro, US dollar etc have reacted positively and negatively over the past few days. It is in your interest to keep an eye on the developments. Recession in Greece Greece has been in the recession for the past five years. It has received the bailout package and with it got austerity measures imposed on them by the European countries. In return as a bailout package, European countries along with International Monetary Fund had asked for reforms. Greece failed to live up to the expectations of the demands of the creditors of bringing the reforms. This time when second bailout package is being delivered, stringent austerity measures are demanded by other European countries. Important Payment in March The second bailout package will be of 130 billion Euros. Greece has to pay tranche of money during the month of March. Without the bailout, Greece will be unable to honor the payments in March. It will have huge repercussions on the financial markets not just in Europe but also on those around the world. It will be a domino effect. When a country defaults it historically has pushed the economy on the edge. It will push the whole economy to the brink of collapse. Difficulties of Greek Politicians There are genuine concerns of people on both sides of the deal. Greece is going into the elections this April. The bailout means more stringent measures on the Greek people in terms of more taxes, relaxation in minimum wages, increase in taxes, lay offs in jobs and retirement benefits. With elections .ing up shortly, it will be very difficult for the politicians in Greece to accede the demands of the creditors. Unions are .ing on the streets against the proposed austerity measures. Demand of the Creditors On other side, leaders from European countries have asked for a stronger .mitment by the Greek politicians. The polls in April have worried the creditors. The creditors demand that reforms should be the priority of any government which .es into the power. Time is Important It is important that the deal is finalized as early as possible. Talks in the past few days have seen some positive developments. But nothing concrete has emerged from the talks. The 14.5 billion euros payment in March is not possible without the bailout package. Finance ministers from different European countries will gather next week. A political consensus will have to be reached. It is not just an issue limited to financial world. In response to the events, Euro swung between 1.3200 and 1.3000. Euro broke an important level of 1.3200 on the upside four times on the hope of Greek deal going through. But it was unable to break the resistance of 1.3230. If the deal goes through the single currency can touch the 1.3400 levels. If the stalemate continues, the Euro can see 1.2500-2600 areas. About the Author: 相关的主题文章: