Learn Why The Unresolved Greek Crisis Is Cause For Worry Directly At Gold-Coin.com
April 7, 2010 - The unresolved financial crisis of Greece, one of the member-countries of the European Union, continues to haunt the Euro causing it to slide against most major currencies. The common currency of 16 European countries, the Euro dropped on April 6 by 0.6 percent to $1.3399 from $1.3484. The Euro had lost 6.4 percent against the US dollar and 5.7 percent against the yen so far this year.
The threat to the Euro by the Greek crisis remains real. A report published in the Wall Street Journal revealed a purported plan by Greece to issue a bond worth between $5 billion and $10 billion. This move, should it materialize, will put more pressure on the Euro. The report had not been confirmed.
Greece director general Petros Christodoulou of Public Debt Management Agency, in a March 31 interview on Bloomberg Television, revealed that Greece needs to borrow bail out funds of 32 billion Euros. Some quarters had expressed doubts at the European Union’s capacity to provide such a huge funding requirement.
The Greek crisis has been perceived as a threat not only to the Euro but to other major currencies. There are 16 currencies that are the most active trade counterparts of the Euro.
Another area of concern is the speculation concerning Greece’s position on the IMF financial assistance. Although denied by Greece’s finance minister, the rumored report was that Greece would bypass IMF assistance because of the expected stiff terms. It will be recalled that several days ago, there were published reports purportedly coming from the IMF that the IMF would help Greece only under its own terms.
Michael Williams
Senior Staff Writer - Gold-Coin.com
