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The Debt Deal

In March 2012, Greece announced a deal with its private lenders(Private Gläubiger!

The Gree" govern#ent $orced the# to accept a bond swap (%"tientausch under bad

conditions! Most o$ the private lenders accepted the bond swap and there$ore lost billions!

The& accepted that because, otherwise, the ris" was to loose all the #one& the& borrowed the

Greece's govern#ent! This bond swap was a condition $or Greece to get new credits $ro#

urope and the International Monetar& )und (IM)! (*therwise the& would not receive

#one& $ro# +

Downgrading )rance's redit -ating

In .anuar& 2012, the rating agenc& /tandard Poor's (agenc& which deals with the

creditworthiness o$ countries downgraded )rance's creditworthiness $ro# %%% to %%! The

rating o$ countries o$ the uro 3one was also downgraded as a warning signal that their

crisis is $ar $ro# being over and stronger actions are needed to sort out their debt proble#! %

downgrading b& one o$ the rating agencies #eans that the interest rate o$ new credits

increases, aggravating(#a"ing worse a countr&'s de$icit in a vicious circle ( The worse the

creditworthiness o$ a countr& the #ore debts the& have to pa&! It was, there$ore, de#anded

 b& the )rench and Italian Pri#e Ministers to pro#ote econo#ical growth in the euro 3one!

(Do not want to save #one& but to invest in econo#&, beispiel /tra4enbau

 %n scalating /piral o$ Debt

The #a5or challenge in the euro 3one is to prevent a $inancial collapse in /pain and

Ital&! Greece and Portugal are virtuall& ban"rupt since 2010 and their govern#ents cannot

$ind bu&ers $or their bonds! /ince then, these countries have been reliant on $inancial

trans$ers $ro# the uropean +nion and the International Monetar& )und(G64ter Geldgeber

$7r /taaten der 8elt! The situation in the euro 3one has been co#pared to the situation in

the +/% and .apan! In the +/%, the )ederal -eserve (9otenban":;oberste o$ GDP co#pared to 100 > $or the +/% and 200 > in

.apan, Ital&, Portugal and Greece $aced steep increases in their de$icits!

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/pain %ccepts