The International Monetary Fund (IMF), who the Greek nation are in default to after Tuesday’s missed loan repayment, have announced today that, under the existing and disputed bailout plans, Greece will need at least a further 50 billion euros over the next three years just to stabilize their economy. The global finance body, based in Washington, said that 36 billion euros of this would need to come from the European Union. According to the IMF, the state of Greece’s economy is the result of public finances simply deteriorating under their current Syriza government.
Furthermore, after capital controls were imposed and banks were shut this week, the IMF has recalculated Greece’s economic growth projection from 2.5% down to 0% for this year. In addition, the only way to give the Greeks some form of debt relief would be to extend the payment period and lower the interest rate on the debt, something which the IMF had previously stated.
On July 5, the Greek nation will gather to cast their vote in a national referendum on the current bailout proposals. A “No” vote, as being campaigned for by the Greek Prime Minister, Alexis Tsipras, and his ruling Syriza party, may bring more economic problems for Greece than they realize. If you are concerned that this crisis has already crossed continental borders, not just European ones, please Like & Share this post.
