Greece to Take Bridge Loan to Restructure Debt

[Corey Dutton]

Banks in Greece have been closed since June 29th, an obvious sign that the Country is in complete and utter turmoil. Greece received the honor of being the first major country to default on an IMF loan. With its massive and unsustainable public debt, Greece’s banks have been closed since June 29th and aren’t expected to open again until a deal is reached with the EU and IMF.

The IMF is upset about the bailout deal offered to Greece by the EU and is demanding that it be accompanied by measures for the Country to restructure its debt. In response, the EU proposed a $12 MM bridge loan as part of the bailout to help Greece pay interest on the debt and use some of the funds to repay the IMF. The entitlement culture in Greece is being challenged by the EU and the IMF with threats to toss Greece out of the EU altogether. An entitlement mindset is a tough one to break and the Greek people are digging their heels in against change. Will Greece be able to get their public debt crisis under control or face complete ruin?

[Richard C.]

Maybe they should post in the BP Marketplace for some private lenders.