The Greeks voted a new government, comprising of the left wing Syriza coalition. The new government was against the austerity program imposed by other European leaders. They just called a referendum and go the support of the people in voting against the austerity program imposed by the lenders. The voting in the referendum was a surprise 61% vote in support of the government's stand.
The Greek government wanted the lenders to take a discount on the past loans that they had lent to Greece. A possible outcome is that the strong support from the referendum will strengthen the hand of the Greek government in negotiating a substantial discount with the creditors.
The alternative option is for Greece to exit the Euro currency, a situation that Europe and Greece wanted to avoid. I expect that both sides will reach a compromise on the last minute to avoid this outcome, and that both sides will agree on that discount.
http://www.bloomberg.com/news/articles/2015-07-06/greek-showdown-looms-with-europe-raising-heat-on-tsipras-ibs93ycs
2 comments:
It is NOT about Greece exiting but it should be kicked out of the union. It is chronic sore to other countries and the world.
What we concern, what would happen to our 4b dollar loan to IMF, have to write this sum of citizens' hard earned money off?
KJ's nightmare is coming true, if Greece gets kicked out of EU, they dun have to honour all those debts in hundreds of billions, and IMF is among their creditors.
This is the danger of a one Party system, no checks and balances against a dominant one Party Govt's behaviour.
Being a taxpayer, my heart is painful.
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