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    Debt Crisis of Greece

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    Debt crisis of Greece: what is it about?

    What are the positive and negative impacts of the subject to finance development?

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    Debt crisis of Greece

    What is it about?

    The debt crisis of Greece is related first to the huge budget deficit and government debt related to GDP. According to 2009 figures the budget deficit was 15.4% of GDP and the debt levels reached 127% of the GDP. The effect of these figures was that the borrowing cost of Greece increased. The debt rating for Greece dropped to BB+ by Standard & Poor and there are serious concerns that the Greece government might default in debt repayment. It is feared that lenders would lose 30% to 50% of their capital. The problem that ...

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