untitled design

Tag: Debt

The pros and cons of high inflation

The pros and cons of high inflation The pros and cons of high inflation

By Tasos Dasopoulos The persistently high inflation that we have been experiencing for about a year, reaching 11.6% in July, has significantly reduced the purchasing power of our incomes and is squeezing GDP due to the increased value of imports of fuel and raw materials. However, it also has some, few, positive sides. It significantly […]

Ukraine secured a two-year debt moratorium

Ukraine secured a two-year debt moratorium Ukraine secured a two-year debt moratorium

Ukraine has secured from its creditors a two-year moratorium on its foreign debt, valued at $20 billion, Prime Minister Denis Schmihal announced, as the Russian offensive on the country continues. “Investors in Ukraine’s foreign debt accepted the delay of payments until 2024. This allows Ukraine to maintain macroeconomic stability and strengthen economic sustainability,” Smikhal wrote […]

ING: How likely is a new debt crisis? In the ‘danger zone’ Spain, France, Belgium, Italy and Greece

ING: How likely is a new debt crisis? In the ‘danger zone’ Spain, France, Belgium, Italy and Greece ING: How likely is a new debt crisis?  In the ‘danger zone’ Spain, France, Belgium, Italy and Greece

Her Eleftherias Kourtalis A decade after the last eurozone crisis, fears of another crisis have intensified again, notes ING, with Spain, France, Belgium, Italy and Greece in the “danger zone”. After the great shock of the pandemic and in the midst of a war on European soil, it is easy to draw parallels with the […]

Moody’s: Belarus is in a state of bankruptcy regarding the payment of foreign debt

Moody’s: Belarus is in a state of bankruptcy regarding the payment of foreign debt Moody’s: Belarus is in a state of bankruptcy regarding the payment of foreign debt

The international rating agency Moody’s has announced that Belarus has defaulted on foreign debt. This is stated on the website of the house. On July 13, the grace period during which Belarus had to pay the amount of $22.9 million for the ten-year Belarus-27 Eurobonds ended. The Ministry of Finance of Belarus made the payment […]

Germany may breach the ‘debt brake’ again if Putin cuts off natural gas

Germany may breach the ‘debt brake’ again if Putin cuts off natural gas Germany may breach the ‘debt brake’ again if Putin cuts off natural gas

Germany is set to abandon its plan to return to strict borrowing limits next year if Russia permanently halts gas deliveries to Europe’s biggest economy, according to Bloomberg, citing people with knowledge of the matter. While Finance Minister Christian Lindner has argued that Germany and other countries in the euro zone must reduce public debt […]

Because the Ministry of Finance is not afraid of a new debt crisis

Because the Ministry of Finance is not afraid of a new debt crisis Because the Ministry of Finance is not afraid of a new debt crisis

Of Tasos Dasopoulos The relatively recent experience of the multi-year economic crisis has led many – experts and non-experts alike – to compare the current situation, with high inflation, forthcoming ECB interest rate hikes and war uncertainty in Ukraine, to the prelude to a new debt crisis. for Greece. The truth is that the first […]

Is the EU Recovery Fund at risk from the explosion of borrowing costs?

Is the EU Recovery Fund at risk from the explosion of borrowing costs? Is the EU Recovery Fund at risk from the explosion of borrowing costs?

By Marcus Ashworth It is reassuring that the European Union continues to enjoy strong investor demand for the debt it sells to finance the € 800 billion Pandemic Recovery Fund (NextGenerationEU). It is less welcome to increase its funding costs by almost 10 times compared to what it paid at the height of the pandemic. […]

IMF: The key to debt sustainability and growth is private savings

IMF: The key to debt sustainability and growth is private savings IMF: The key to debt sustainability and growth is private savings

By Tasos Dasopoulos The IMF considers it necessary to increase the savings (public and private) in Greece by 17% of GDP (approximately 32.62 billion euros) in order for Greece to be in an investment position higher than it had before the outbreak of the 2009 financial crisis . According to a report accompanying the approval […]

What has the ECB decided on the bond crisis? Nothing

What has the ECB decided on the bond crisis? Nothing What has the ECB decided on the bond crisis?  Nothing

By Marcus Ashworth “It’s nothing, but it’s nothing.” The philosopher Ludwig Wittgenstein wrote about the inability to discuss private senses such as pain. It could, however, hypothetically describe the European Central Bank’s announcement on Wednesday in the same way, following an emergency meeting of policymakers that took more than three hours to produce less than […]

Because the markets are afraid of a repeat of a debt crisis in the eurozone

Because the markets are afraid of a repeat of a debt crisis in the eurozone Because the markets are afraid of a repeat of a debt crisis in the eurozone

The prospect of rising European Central Bank inflation rates has sparked markets and spurred bond yields in some eurozone countries, to the point where the European financial institution has been forced to intervene to reassure investors. What is the state of interest rates? The ECB’s announcement on 9 June that it announced a faster-than-expected easing […]