> Home > Blog > EU News > Abandon ship: Time to stop bailing out Greece?
>  Blog
Abandon ship: Time to stop bailing out Greece?
Date 21/06/2011 16:38  Author webmaster  Hits 1136  Language Global
21 JUN 2011

Open Europe has this morning published a new briefing looking at the potential impact of a second Greek bail-out. The report finds that each household in the eurozone currently underwrites €535 in Greek debt, through the existing loan guarantees. By 2014, and following a second bail-out, this amount could increase to €1,450 per household, as around 64% of Greek debt would by then be held by official creditors (EU, IMF, ECB). The briefing also notes that, under a best case scenario, a second Greek bail-out would need to be worth €122bn, although this assumes that Greece can make good on its deficit targets and privatisation commitments. If Greece fails to meet these targets, the funding gap could increase to €166bn.

By Raoul Ruparel | Open Europe

Read entire report (pdf)