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The Greek Debt Crisis - Assignment Example

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The Greece economy has encountered several swings in the economy due to its debt crisis. The Greek debt crisis is considered as the most significant debt crisis in the world. It has lead…
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The Greek Debt Crisis
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Download file to see previous pages This paper is inclined towards analyzing the debt crisis of Greek. The debt crisis is considered as an important point for discussion. The countries have to encounter various financial constraints due to the debt crisis. The main reason for the Greek crisis is the weakening of the economic assistance and support. The Greek debt crisis has captured the attention of the people across the world. The main cause of the sovereign Greek debt crisis is due to the failure of the government in repaying of the debt to other countries. Debt has become a burden for Greek. The increase in debt is not only due to the failure of the government in repaying of its debt but also due to the low interest rate that prevailed in the country. The crisis has adversely affected the economy with the decrease in the employment opportunities. The low rate of interest has risen the domestic spending and has increased the rate of inflation. The reliance on borrowing by the Greek government on the international market has led to the emergence of crisis. The crisis has impacted negatively. Since the failure to repay the debt has affected the confidence of the consumers to a large extent. As a result of which the investors will hesitate in investing in this countries and the countries of the world will restrict them from lending to Greece. The rate of debt has rose during the period of 2008 to 2009 as a result of which it has adversely affected the financial performance of the country.
The financial debt crisis has affected the country in 2007 and the crisis has continued till the period of 2011. The Greek debt crisis is considered as one of the largest debt crisis of the world as compared to the debt crisis that is encountered by the other countries of the world. The debt crisis has affected all the sectors and segments of the economy to a large extent. The banking sector has been adversely affected (Bitzenis, 2014).
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