Recently a bailout package has been put together to help save Greece's economy and by extension, strengthen the Euro. Spain has contributed to this joint EU/IMF or (international monetary fund), bailout package by offering 2 billion Euro's. Spain's prime minister reminded commentators that this money was not a gift but a loan that would be paid back with interest. This rescue plan is only going to be used in the case that Greece cannot re-finance its debt and raise funds from financial markets. This Euro zone-IMF deal has been confirmed by German, Portuguese, Spanish and Greek officials at the summit of European Union leaders.
European and U.S. stock markets rose earlier Thursday on news that a financial rescue package for Greece was taking shape. Market worries over Europe’s weeks-long hesitation to set up a safety net for eurozone members who can’t pay their bills has sent the euro sliding to a 10-month low. The euro traded at $1.33, down from $1.51 in November.
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This was interesting to read! I liked that Spain is going to help another country by contributing a large amount of money. Of course Spain mentioning how it will strictly not be given for "free" will ensure Greece that it will be paid back over time. Good Post though!
ReplyDeleteGood post! I did not know that Spain loanded Greece money to help bail them out.
ReplyDeleteI like the fact that Spain is offering to help out where help is needed. I just hope their assistance doesnt put Spain in a hole that they are unable to climb out of.
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