Greece's Debts Top 300 billion euro or roughly equal to its GDP figure.

 

March 13, 2010 (Hamsayeh.Net) - European Union member states seem to have agreed on a bailout package scheme for Greece on Friday. The euro zone consisting of 16 members have agreed to share the bailout package by making contributions if the government of Papandreou fails to refinance its huge debts.

 

Greece has an overall international debt of more than 300 billion euro or roughly equal to its GDP figure. The country has been badly battered by the US-led financial experimentations in the region following the Soviet collapse and the start of America’s war in oil rich regions. Tourism, Greece’s most important service industry also continues to experience a downturn due to increasing levels of insecurity caused by the US global war on terrorism.

 

 The latest bailout by the euro zone could reach 25 billion euros while the country’s total borrowing needs exceeds 53 billion euros in 2010.

 

A senior official working on this matter explained that the bailout will be a coordinated approach of bilateral contributions ... a bilateral contribution can be a loan or a loan guarantee. The guarantees will facilitate the kind of funds potentially needed in this context.

 

The European Union is apparently at a crossroad at this time. If the Greece goes bankrupt it would have a domino effect on all other members especially for countries in the southern parts of Europe like Spain and Portugal.