All about Greece and other shaky economies All about Greece and other shaky
economies All about Greece and other shaky economies All about Greece and
other shaky economies All about Greece and other shaky economies All about
Greece and other shaky economies All about Greece and other shaky economies All
about Greece and other shaky economies


Earlier it was companies that were going bankrupt, now countries are turning
belly up. The latest crisis in Greece threatens world's financial stability
at a time when many countries are slowly recovering from the global
recession.

Moody's rating agency has warned of a severe risk of contagion as it expects
the euro zone's debt crisis to destabilise the banking sector in several
European Union countries. Stock markets across Europe have already crashed,
affecting markets across the world. The euro hit a 14-month low against the
dollar.
Concern about soaring government deficits and debt levels, downgrading of
European government debt has raised alarm bells again.

On May 10, the Eurozone countries and the International Monetary Fund
finally agreed to a $1-trillion financial aid package for Greece, on the
condition of implementing several austerity measures. The rescue package is
aimed at ensuring financial stability across Europe. Analysts say this could
have come earlier to save many other countries from falling into a deeper
crisis.

Eurozone countries have total government debt worth 6 trillion pounds. While
Germany accounts for 1.4 trillion pounds, while Greece is liable for 250
billion pounds.

However, the crisis is unlikely to have a major impact on Asian economies
apart from Japan. While countries like India may be unaffected by the Greece
crisis, many countries in the Euro zone face a grave crisis.

''As far as India is concerned, the impact on us will be minimal. In fact,
in the short run - that is, purely in the short run - it might help us in
terms of India being regarded as a relatively safe haven,'' Finance
Secretary Ashok Chawla has said.

Moody's rating agency has warned of a severe risk of contagion as it expects
the euro zone's debt crisis to destabilise the banking sector in several EU
countries. The aid package led to markets across the world surging ahead.

*Here's a look at the Greece crisis and other countries in financial
turmoil...*

*Image: *An anti-government march in Athens.
*Photographs: *Reuters.
http://business.rediff.com/slide-show/2010/may/12/slide-show-1-all-about-greece-and-other-shaky-economies.htm

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