Greece Could Soon Be Forced Out Of Eurozone Due To Inability To Pay Outstanding Debts

Greece’s economy has been in trouble for a number of years and the country has accumulated huge amounts of debt with the European Union, the European Central Bank and the International Monetary Fund. These organizations have bailed Greece out numerous times by sanctioning huge loans which now remain outstanding and Greece does not appear to have funds nor a strong plan to convince its lenders to be patient anymore.

Greece has to pay a number of outstanding bills during the coming months and will most likely have to borrow money once again to pay its debts. Not only will the country have to borrow to clear its loan repayments but will also have to borrow to have sufficient funds to pay monthly salaries and pensions to its public sector industry. A representative from the Greece’s finance ministry who preferred to be anonymous stated that Greece will have to exhaust all of its remaining cash reserves to raise approximately €2 billion in order to pay outstanding salaries and pensions in April.

In a statement, Paolo Pizzoli, a senior economist at ING in Milan said “The Greek government has tried to squeeze money out of a variety of sources for a couple of months now. Furthermore, the ‘running out of funds’ rhetoric has often been used instrumentally to affect negotiations by parties involved, adding to the noise. Bottom line, we, or at least I, don’t now how much money the country has now available, but I suspect that there is not much left in the coffers”.