Essay about Greece : The Verge Of Going Bankrupt

1077 Words Nov 16th, 2015 null Page
Greece is on the verge of going bankrupt. Greece failed to make a payment to the International Monetary Fund (organization of 188 countries, working to secure financial stability and international trade). Will Greece be leaving the Euro zone? The Euro zone has been helping Greece for many years financially, but you can only help someone or something for so long. Currently, Greece is under strict rules to get their financial situation back in order. How will the future Greece affect the Euro zone and world? In the article Understanding the Downfall of Greece’s Economy, by Matthew Johnston it explains how Greece got to this point in their financial situation. Greece failed to make a payment to the International Monetary Fund. Greece was the first in history to have missed a payment so high, consisting of 1.6 billion Euros. (Johnston) When Greece joined the Euro zone they were already having financial problems however the Eurozone had not helped the situation by bailing Greece out ever time they got into debt.
Greece thought becoming a member of the Eurozone would help boost their economy. As the Eurozone bailed out Greece in their financial problems, investors thought Greece was a good place to invest. This meant lower interest rates for Greece to barrow money, as they paid off debt they could barrow more. With the lower interest rates and increase in barrowing, Greece started spending more. However, Greece was not making money to pay back their loans. Greece has had so many…

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