It’s been nearly a year since Greece accepted a debt relief bailout of $147billion from the International Money Fund (IMF) and it appears as though Greece still doesn’t have its head above water. The bailout, which caused significant turmoil amongst nationals, was intended to provide an opportunity for Greece to repay its debt as the government made budget cuts and restructured its financial affairs. It has now been a full year since the bailout and Greece has not returned to financial stability. There are talks that Greece may consider pulling out from the European currency, the Euro, in efforts to alleviate financial strain.
Global Fight for Financial Freedom
Lately, it seems easier to list the countries that are not plagued by economic crisis. Ireland is also experiencing financial hardships and is in works to negotiate a $85 billion bailout plan with the European Union (EU) and IMF. Significant investor cutbacks, lower demand for the GDP and national income reductions has pushed Ireland into recession for the past few years. Portugal is another EU member that has fallen into the economic downturn the last few years, and is in the process of negotiating a $78 billion bailout. Portugal is expected to bump up their national productivity and GDP competitiveness, while also reducing their unemployment rate as part of the proposed debt relief plan.
As many countries face debt relief assistance, ideas about other debt relief options are being tossed around. Based on precedent, a full debt repayment is rarely conducted in these situations and usually financially impossible. It is more likely that each of these countries will undergo a debt restructuring process to alleviate their national debt in attempt to return to financial stability.