FINANCE — Greece Must Reach Debt Deal In Order To Avoid Default

The clock is winding down and creditors are getting anxious said U.S. Treasury Secretary Jacob Lew on Saturday, advising Greek leaders to reach a debt deal that would prevent a major default — one which would otherwise wreak financial havoc across the globe. Without a significant deal in place, the country, which has relied heavily on international loans to subsidize all of its government programs and employee paychecks, would likely miss two of its payments and create a ripple effect that could hurt world economies. Before cementing any sort of monetary assistance though, the International Monetary Fund told Greece that the country must “produce credible reforms” in order to prove that it will properly pay back the $7.2 billion it’s set to receive.

“It’s something that the European and global economies don’t need – to have another crisis,” said Lew in a statement on Friday, indicating that if the country could not come to an agreement, the resulting default would “create immediate hardship for Greece.”

Read more at

bustle-logo

Image: Brookings Institute/Flickr

Advertisements

Comment

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s