Greek Debt Crisis Explained Part 2

Following the collapse of the financial sector in the U.S, another audit of Greece’s finances was conducted, and it was revealed that the years since the 2004 audit found that Greece had understated its debt and deficit ratio to debt. This kept Greece from being able to participate in the financial sector i.e., borrow money to pay off previous loans, which brings us to the debt crisis. The International Monetary Fund, the European Central Bank, and the European Commission bailed out Greece, and this, together with debt owed to other Eurozone members comprises roughly two-thirds of Greece’s debt. This explains Continue reading Greek Debt Crisis Explained Part 2

A Little Context for the Greek Debt Crisis

If you’ve paid even the slightest bit of attention to international affairs, you’d know that Greece has been in economic trouble since the Great Recession, which resulted in the Greek Debt Crisis a year later. The subsequent handling of the crisis between Greece and its creditors is an issue that I’m looking forward to discussing in the future. However, I’d like to discuss a different aspect of Greece and the Eurozone. The Eurozone refers to countries within the European Union, whom, once they’ve met certain financial requirements, may ditch their local currency, and adopt the Euro. Having a common currency Continue reading A Little Context for the Greek Debt Crisis