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  1. #1
    Legendry Member milos's Avatar

    Euro zone in crisis !!!

    Investors are seeking interest from Portugal more than 8% on long term loans.It reminds the worst time of the debt crisis.Whether it is coming back?Not surprisingly,the market once again became nervous, they do not have confidence in the measures taken.Therefore, the debt crisis remains in focus.Crisis number one at the moment is Portugal.The International Monetary Fund believes that it's state debt next year could climb to 140% of GDP if the boom is developing worse than expected.From that perspective,it is unlikely that Portugal since mid in 2014 be able to finance itself in the market-when they expire euro zone loans a new rescue package for Portugal.Whether Greece has met the conditions for the next tranche.Greece must admit that it has failed to the extend necessary to reduce the number of jobs in the public sector.There is no progress in privatization.And despite all austerity measures,the Greek debt is reached again 175% of GDP. The aim of the creditor to the 2020th it was reduced to 110% looks less realistic.Many expert believe that the inevitable debt write-off.This will impact and German taxpayers Greece's high time to leave the euro zone with a proper program of restructuring the economy.Citizens of islands Cyprus have to save a total of 13 billion euro.Given the drastic decline in GDP,government in Nicosia sent a distress call to Brussels which remained unanswered.It is saved a large number of banks but the load is transferred by citizens even though they are at least to blame for problems.

  2. #2
    Senior Member LeeChang's Avatar
    Portugal debt interest of 8% is showing there is no longer believe from investors in their economy. The situation could easily become more vulnerable that it is now and to lead to some type of greek kind debt crisis with debt restructuring from the major creditors. This will be even worst for the euro than the Greece crisis last year. Greek indeed is already restructured and under tight observation of the IMF and all the monetary authorities of the ECB and European parliament. That mean it won’t make any surprise if there are problems again but they will be solved the same way as the problems before. The Greece creditors already take the loss and they could take another one if needed.

  3. #3
    Legendry Member Michael Hodges's Avatar
    Portugal is certainly a hot spot in the EU right now but I wouldn't put too much importance on it yet. The EU, IMF, EBC and eieieio have all shown that they are ready, willing and able to help and restructure in effort to build a stronger EU economy. Portugal may flare up as a short term bearish development but longer term should only be yet another speed bump on the road to greater EU recovery.

  4. #4
    Legendry Member milos's Avatar
    The euro fell against the dollar during the day as the US currency rose against the most currencies counter to today's publication data in the US.In Europe inflation in retail sales in Spain rose less than forecast in the last month.According to the Office for National Statistic Spain CPI(inflation index) rose by 0.1%. Analysts has expected an increase of 0.2%. Industrial production in the euro zone fell more than economists expected.In his report,Eurostat announced that in May there was a decline from 0.5% to -0.3%. On an annual basis there was a decline of 1.3%. The political crisis in Portugal continued to adversely affect the value of governmental bonds.Grows on benchmark ten-year bonds rose 12 basis points to 7.1%. They were compared for growth on German the ten-year bonds fell 4.5 basis points to 1.57%. During the day euro fell 0.46% against the dollar.

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