Monday, July 30, 2018

The German-Greek Loan Deal

It's not a topic that the German government really wanted to chat on....but some business newspaper journalists (from FAZ) got the numbers and added up the German loan to Greece and the impact.  The story is told by Deutsche Welle.

The loan deal?  34-billion Euro (in the range of 40-billion US dollars).

FAZ had analysts pouring over the info which they finally got from the German government (forced via a parliamentary question from one of the opposition parties).

What FAZ says....is...."the volume of additional interest rate deferments over 10 years depends on actual interest rate conditions and is currently estimated by the federal finance ministry to be around €34 billion."

It's a fair sum of money and I doubt if the common regular guy on the street realizes the impact of this 'loan'.

If Greece fails?  The Germans will just wipe the money from existence and just suggest that it was the price they had to pay.  I'm not sure that the regular working-class guy would agree with that logic.

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