Archived Piraeus bank CEO says Greek banks will not open Monday (telegraph.co.uk)
submitted ago by redikulous
Posted by: redikulous
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Archived on: 2/12/2017 1:51:00 AM
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Archived Piraeus bank CEO says Greek banks will not open Monday (telegraph.co.uk)
submitted ago by redikulous
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[–] yankee_rebel 0 points 1 point 1 point (+1|-0) ago
Not quite yet if Greece votes Yes on the referendum the IMF already said they'll work with the country despite the nation already having defaulted.
[–] pilgrimboy14 0 points 1 point 1 point (+1|-0) ago
There reaches a point where a person and a nation just needs to declare bancruptcy. Taking care of that debt is killing them. The creditors don't care; they just want their money.
[–] yankee_rebel 0 points 1 point 1 point (+1|-0) ago
I sovereign can't ever really declare bankruptcy, they can default on payments which has a similar effect credit wise but the debts still exist and to re-enter foreign markets/obtain future credit they'll need to re-negotiate with other nations who hold the notes not to enforce them. If Greece tomorrow says were refusing to make payments on outstanding debts, Germany, France, Japan and all those that lent money can still nope you still owe us and refuse to lend/impose sanctions until they feel they've been satisfactory repaid and Greece can't do a thing about it other than continue to say were not paying it.
While default should generally be avoided history has shown it does provide wake-up calls to nations. Is default right for Greece only time will tell, but if they do go the route of default there is going to be a lot of economic hardship in the near future without any major source of exports.
[–] didntsayeeeee 0 points 1 point 1 point (+1|-0) ago
If a country could just get away with saying "Nyer nyer, we're not paying off our debts" that would fuck the world up.
There needs to be a cost. Like, Greek sovereignty needs to be destroyed, the Greeks moved to Africa and the territory of Greece turned into a German holiday resort where every German gets to leave a towel permanently on a deckchair somewhere.
[–] Shammyhealz ago
That's a dangerous line to walk, though. If they do declare bankruptcy, other nations will not want to loan them money afterwards, or if they do it will be at a high interest rate. And they will need money, because declaring bankruptcy still won't solve the financial issues that put them so far in debt in the first place.