The Greek Saga, More Life-support from a Desperate Euro Nation

Is anybody keeping track of this madness?

In 2010 Greece received the 1st tranche rescue loan of 110 billion Euros. (Euro states allocated 80 billion ► (22 billion coming from Germany) ► and 31 billion Euros coming from the IMF. (the US is the largest IMF monetary provider) gave the remaining 31 billion Euros. However, Greece’s economy deteriorated further and the country made another application for a 2nd Euro zone rescue fund, with EU zone members eventually approving additional 109 billion Euros.

Out of the 1st tranche rescue loan, Greece [so far] received 65 billion (effective September 1, 2011). Everyone following the Greece economic debacle realizes the country will need support for years to come. The arithmetic is simple. The country gets loans requiring certain repayment. Meantime, Greece’s economy shrinks and continues to contract by sheer austerity measures demanded by loan providers. As a result, the country’s economy declines faster than the ability to repay. It’s like what comes first ? Chicken, or the egg?

Unfortunately, and with all eyes on Greece, it is not the only problem child in the Euro-zone.

According to the IMF, FAZ, and EU, Ireland [so far] ► received 22 billion Euros, with the IMF giving 7 billion, and EU countries 15 billion, out of an EU approved 85 billion package.
Portugal has been the recipient of over ► 30 billion Euros out of an approved 78 billion rescue loan. (IMF paid10.5 billion, EU countries 20 billion Euros)
Who is next? Italy? That country’s debt in relation to its GDP (2011 estimated) is over 120%. What about Spain? Belgium? or, the Netherlands?

The time will come, when European banks will say- enough is enough. That day will also mark the end of the heralded Euro. Already, France’s 3rd largest bank Credit Agricole , wants to reduce its Greek exposure by 50 billion Euros. The bank wrote off during the 1st half this year, some 202 million Euros and has another 400 million tied up in a Greek subsidiary Emporiki. The bank knows what’s coming.


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