If you have accumulated debt over the years, you are not the only one. Especially as a result of the quick tips that landed in Greece, the debt curve started to rise quite significantly. Quick draws were taken from the right and left and could not be paid off at all. The nipple was paid off with another lever and the debt spiral was finished right away.
The interest rate cap that came into effect in 2013 did not help. Some companies that provide instant liens closed, but some just found a way to get around the interest rate ceiling by offering bigger loans. Instead of taking a few hundred loans, the Greeks were now offered thousands of euros in loans. Debt volumes thus increased.
Greece benefits from debt relief
The Greek stock market and the country-specific exchange-traded funds (ETFs) that give investors exposure to the country’s stock market rose last week since the Athens governors calmed investors’ fears by laying the groundwork for an agreement on emergency loans and debt write- offs. Greece benefits from debt relief, which has led investors to buy Greek shares.
In addition, the Greek government’s borrowing costs fell to its lowest level in six months, 7.34 percent, which also helped to ease the country’s borrowing burden. Greek interest rates have been raised on fears of a financial debt crisis, which contributed to the high borrowing costs that threatened to throw the country’s economy into disarray.
There is a more benevolent feeling towards Greece today compared to a year ago. No one wants to see a situation like summer 2015 again. The euro area leaders do not want it, but the question is whether they will succeed in meeting this wish. Eurozone finance ministers will meet on Tuesday to write on emergency loans for Greece and possibly overall plans to help the emerging economy restructure its debt to make it more sustainable.
In addition, a vote of confidence from the Eurogroup could lead to the Best Lenders Bank restoring an exception for Greek government bonds that would provide cheaper funding to the country troubled financial sector and make the Greek debt eligible for increased quantitative easing.