Greek Prime Minister Alexis Tsipras Likely To Accept The Conditions Of Bailout
Officials in Europe are ready with a detailed plan on how to tackle the situation when Greece effects an exit from the Euro zone or Grexit. The problem is compounded by the fact that the Greek government can do very little to help itself.
In this case, the European Union is also not in a position to help the Greeks. Grexit is going to have a potentially negative effect on the Greek economy.
The Greek government is badly in need of funds to pay salaries to its employees besides paying out pensions. In case it is not able to raise the money required to repay its debts to European Central Bank by July 20, the country is likely to be declared a defaulter. It is not going to be left with a choice but to issue IOUs.
In the wake of the financial crisis that has gripped the nation, banking services in Greece have been terminated since June 29. Withdrawals from ATMs have been limited to $66.
For the Euro zone to extend a helping hand to the Greeks with a bailout package, they first need to make formal request. The request is supposed to go through a process of scrutiny and debate by leaders from European nations.
This is because the government in Athens has yet to show its commitment to accept the austerity measures suggested by the members of the Euro zone.
Some members want stringent action against Greece in case it defaults, while others are willing to adopt a flexible attitude towards the problem.