PRLog (Press Release) -
Apr 21, 2010 -
“SunWorldwide”
analysts believe that the euro will more than likely recover some of the ground it has lost against the US dollar when markets begin trading Monday after finance ministers from the 16 countries using the single currency were forced to release details of the financial aspects of the support they will provide to Greece should the beleaguered nation be unable to borrow money from the markets at reasonable rates.
The EU states said they would offer loans of up to €41 billion at three-year interest rates of around 5% in case Greece needs the money. A further, but unspecified sum would come from the IMF.
http://www.imf.org/external/index.htm“SunWorldwide”
sources said that the reassurance from the EU could serve to underpin the euro which has dropped nearly 6% against the greenback this year alone and begin the process of re-establishing confidence that the European Union is capable of dealing with crises without being seen to run to the IMF for funding.
Germany had been the most resistant to the prospect of committing funds to back up previous incarnations of the rescue plan but the jump in yields on Greek bonds last week is thought to have persuaded the nation to relent.
“SunWorldwide”
analysts believe the euro will recover but it faces further turmoil in the form of the growing debt problems of both Spain and Portugal which may become the focus of investors in the weeks ahead. http://en.wikipedia.org/
wiki/Euro
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