World Economy

Greece at Crucial Point

Greece at Crucial PointGreece at Crucial Point

Discussions are heating up over future debt repayments for Greece, with the country hoping to break free from years of financial assistance since the eurozone sovereign debt crisis that ravaged its economy, CNBC reported. The International Monetary Fund, European creditors and the Greek government are hashing out the final details of a deal that will make it easier for Athens to repay its debts. The issue is getting more pressing by the day as Greece prepares to end its third financial rescue of €86 billion ($ 101.38 billion) in August. Until then, the Greek government needs certainty about its debt relief to enable it to claim a successful breakaway from international assistance, after eight years. Greece will be looking to finance itself in the public markets after August. But without clear details—or even significant changes—on its future debt, Athens is likely to face higher borrowing costs as investors turn away from the country, thus increasing the likelihood of more economic pain for the embattled southern European nation. The country currently sits on a debt pile of about 180% compared to its gross domestic product—the highest in the eurozone.


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