The crisis in Greece will hit German and French banks
Berlin - Kyiv, January 05 (PolitNavigator, Vasily Ablyazimov) - Greek government debt bonds opened the week with a new fall. German economic news Even the stock market in Athens is reported to have experienced a sharp decline. However, the main risk of Greece's state bankruptcy will fall not on the country itself, but on its European creditors.
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“The discussion of Greece's exit from the eurozone on Monday again made investors worry. The index of leading indicators on the Athens Stock Exchange fell by 2,6 percent, and has lost more than 20% since the announcement of early presidential elections in early December,” writes German Economic News.
However, the situation with Greece, according to the publication, threatens not so much the country itself as the large banks and international financial institutions such as the IMF that lent to it. “Most of the risk lies with European taxpayers and international creditors,” says the German publication.”
Greece was credited during the crisis using a complex structure of mutual borrowing between the so-called. The Troika, which included the IMF, ECB and EU and private German, French and other banks. Now German banks are busy in Greece trying to ensure guaranteed repayment of almost 24 billion euros of loans that could be lost when Greece leaves the eurozone. French banks are engaged in similar actions, which, however, lent to Greece in a smaller volume. Failure to repay debts could lead to the threat of bankruptcy of a number of private banks in Germany and France.
At the same time, the political and financial crisis in Greece exacerbated the internal party struggle in Germany. Thus, Markus Ferber, criticizing the actions of Angela Merkel’s government, said that if Greece “returns to the old track” it will not receive support from the EU. Greece is one of the weak points of the current German Chancellor, which opponents of the current government will not fail to take advantage of.
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