Saturday, 10 April 2010

Can Greece survive without Gordon Brown's help?

"This should be an interesting weekend for euro-watchers. If the rumours in the market are correct, Greece will imminently receive the details of its emergency loan organised by euro governments in association with the International Monetary Fund. The big short-term question hinges on the level of the loan’s interest rates. Will it, as Angela Merkel seems to want, be tied to the market interest rate for Greek debt (currently somewhere north of 7pc), or will it, as Reuters is reporting, be tied instead to the IMF’s special drawing rights, and be distinctly lower? The question is important, since the level will determine how quickly the country can hope to escape recession."

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