Greece is classified as an advanced high-income economy, according to Wikipedia.
With great pomp, at the end of June 2019, the European finance ministers announced the end of the eight-year-long Greek debt crisis that brought the entire Eurozone into its deepest financial dilemma to date. Was this a deep deception? The EU ministers refused to write off, instead, they did a "destructure interest capitalisation" of the existing debt similar to what Washington did to Latin America in the 1980s.
Under the new scheme, the due date for loan repayment will be extended by ten years on major parts of its total debt obligation, on a public debt equal to 180% of its GDP or 340 billion euros despite reforms. The EU loaned an added 15 billion euros in a new debt to "ease" the crisis.
Similar negative reports about the Greek economy rarely mentioned the previous years of Greece's high economic growth rates combined with low government debt.
The Greek government-debt crisis was the "sovereign debt crisis" faced by Greece in the aftermath of the financial crisis of 2007-2008. It reached the Greeks as a series of sudden reforms and austerity measures that led to impoverishment and loss of property, as well as a small-scale humanitarian crisis. Mrs Christine Lagarde indicated "lack of respect for the sacrifices made by the Greek people."
In all, the Greek economy suffered the longest recession of any advanced capitalist economy so far, overtaking the US Great Depression. As a result, the Greek political system has been chaotic, social exclusion increased and hundreds of thousands of well educated Greeks have left the country.
A large number of negative articles about the Greek economy and society have been published in International media before and during the crisis, leading to accusations about negative stereotyping and possible effects on evolution or the crisis itself. Elements contradicting severe negative reports, including the fact that the Greeks worked the hardest in the EU, took fewer vacations in days, and on average retirement age was the same as the Germans. Greece's private and household debt to GDP ration was one of the lowest in the EU, while the government expenditure as a percentage of the GDP was the EU average.
The important Greek industry includes tourism and shipping, with18 million international tourists in 2017 and the Greek merchant navy is the largest in the world.
The Greek Prime Minister, Kyriakos Mitsotsakis, spelt out a series of measures, including tax cuts during the "bridging period" between lockdown and returning to normalcy. Also, the Greek Tourism Minister clarified that the restart tourism project is evolving on two parts, the first is the domestic one and the second is opening the borders to foreign tourists.
Tough financial times are bringing the issue if credit lines to the forefront of the shipping industry, with crumbling oil demand and tighter credit conditions forcing the industry into some hard choices.
COVID-19 has not only impaired economies worldwide, but it has made oil and bunker prices to fall sharply, which is catastrophic for international shipping, including the Greek merchant navy.
We all hope and pray for better days which are sure to come in the not so distant future.
 |
| The EU Finance Ministers |
With great pomp, at the end of June 2019, the European finance ministers announced the end of the eight-year-long Greek debt crisis that brought the entire Eurozone into its deepest financial dilemma to date. Was this a deep deception? The EU ministers refused to write off, instead, they did a "destructure interest capitalisation" of the existing debt similar to what Washington did to Latin America in the 1980s.
Under the new scheme, the due date for loan repayment will be extended by ten years on major parts of its total debt obligation, on a public debt equal to 180% of its GDP or 340 billion euros despite reforms. The EU loaned an added 15 billion euros in a new debt to "ease" the crisis.
Similar negative reports about the Greek economy rarely mentioned the previous years of Greece's high economic growth rates combined with low government debt.
The Greek government-debt crisis was the "sovereign debt crisis" faced by Greece in the aftermath of the financial crisis of 2007-2008. It reached the Greeks as a series of sudden reforms and austerity measures that led to impoverishment and loss of property, as well as a small-scale humanitarian crisis. Mrs Christine Lagarde indicated "lack of respect for the sacrifices made by the Greek people."
In all, the Greek economy suffered the longest recession of any advanced capitalist economy so far, overtaking the US Great Depression. As a result, the Greek political system has been chaotic, social exclusion increased and hundreds of thousands of well educated Greeks have left the country.
A large number of negative articles about the Greek economy and society have been published in International media before and during the crisis, leading to accusations about negative stereotyping and possible effects on evolution or the crisis itself. Elements contradicting severe negative reports, including the fact that the Greeks worked the hardest in the EU, took fewer vacations in days, and on average retirement age was the same as the Germans. Greece's private and household debt to GDP ration was one of the lowest in the EU, while the government expenditure as a percentage of the GDP was the EU average.
The important Greek industry includes tourism and shipping, with18 million international tourists in 2017 and the Greek merchant navy is the largest in the world.
The Greek Prime Minister, Kyriakos Mitsotsakis, spelt out a series of measures, including tax cuts during the "bridging period" between lockdown and returning to normalcy. Also, the Greek Tourism Minister clarified that the restart tourism project is evolving on two parts, the first is the domestic one and the second is opening the borders to foreign tourists.
Tough financial times are bringing the issue if credit lines to the forefront of the shipping industry, with crumbling oil demand and tighter credit conditions forcing the industry into some hard choices.
COVID-19 has not only impaired economies worldwide, but it has made oil and bunker prices to fall sharply, which is catastrophic for international shipping, including the Greek merchant navy.
We all hope and pray for better days which are sure to come in the not so distant future.
 |
| For You Dear Reader |
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