EU mercy for Greece
27/10/2011 00:00
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The EU leaders’ agreement for easing the Greek debt obliges a country
with poor economy like Albania to give its contribution too. According
to the agreement, the private banks that have given loans to the Greek
Government are obliged to pardon 50% of the sum, since Greece has no
financial possibilities to pay it.
Top Channel has learned that the Albanian banks have invested almost 11 million EUR to the Greek government. According to this agreement, 50% of this sum, or 5.5 million EUR will be pardoned by the Albanian banks.
Official data from Bank of Albania indicate that the last year’s profit for the Albanian banks was 48 million EUR. The sum that the Albanian banks will pardon to Greece is almost 12% of the annual revenue.
However, the loss for Albania is modest and doesn’t create problems for the banking system. Different to what might happen in some other countries, especially in Greece, when some banks might be nationalized, due to the great losses caused by the agreement.
The European countries reached an agreement with the Greek debtholders that sees private investors take a 50% cut in the face value of their bonds. Officials believe that this would reduce Greek debt levels to 120% of the GDP in 10 years.
The Greek Prime Minister, George Papandreou declared that a new day was coming for Greece. He declared that Greece escaped collapse and secured a 100 billion EUR of financings until 2014, while they laid the foundations for reducing the GDP deficit to 120% by 2020, from 160% that it is today.
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