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GREECE AND THE 4 MONTH LOAN EXTENSION

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GREECE AND THE 4 MONTH LOAN EXTENSION

GREECE AND THE 4 MONTH LOAN EXTENSION

Feb 23 2015, 11.57am GMT

STOCK.com

Greece is preparing a list of reforms to lenders to persuade for a bailout extension

The list of reforms is due on Monday and subject to approval by the International creditors before Greece is confirmed to have 4 more months to pay back its loan.

Minister of the state, Nikos Pappas promised to include measures of tackling tax evasion and restructuring the civil service on the list of reforms. Greece aims to recover 7.3 bn euros via measures of tackling tax evasion.

The total debt of Greece up to date is €323bn and 175% of the country’s GDP. 60% of the total sum is owed to Eurozone, 15% other bonds, 10% to IMF, 6% to ECB, 3% to Greek banks and another 3% consists of other loans, 1% of the sum is owed to the Bank of Greece and another 1% to foreign banks.

Greece borrowed €240bn from the EU, the ECB and the IMF. Unemployment has reached 25% with youth unemployment almost 50% versus the averages of Eurozone at 11.4% and 23% respectively. The Greek economy has shrunk by 25% since the start of the Eurozone crisis.

At a meeting on Friday Greece agreed with the EU and IMF lenders to submit the list of reforms before Tuesday in order to get a 4 month loan extension. Athens will send the list of reforms to Brussels today and the creditors will give their verdict tomorrow. Greece promised not to take any independent actions to threaten financial stability.

The four-month extension deal is widely regarded as a major retreat for Prime Minister Alexis Tspiras, who won power with promises to reverse budget cuts.

EURUSD shows volatility as Greece negotiates its bailout plan. The pair traded a 1.137 on Monday’s opening and dropped to 1.130 by now

MT4 GRAPH: EURUSD

GREECE AND THE 4 MONTH LOAN EXTENSION

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