Tags: george | soros | debt | greek | spiral

Soros: Greece Still at Risk of Debt Spiral Despite Rescue Deal

Wednesday, 14 Apr 2010 08:09 AM

 

A European rescue deal to help Greece tackle its debt crisis is only a small step and the country could still fall into a "debt spiral," legendary financier George Soros warns.

Greece's 15 euro zone partners offered on Sunday to lend Athens 30 billion euros ($41 billion) this year at below market rates in order to calm fears of a default.

A further 15 billion euros could come from the International Monetary Fund, helping to restore confidence in Greece and thereby aiming to push down the interest rates it must pay to raise fresh funds on the markets.

But Soros, who has made billions from currency speculation, said the move was "just a little step."

"While five percent (the rate at which other euro zone members are willing to make the loans to Greece) is better than what the market is willing to offer ... a rescue package should offer concessional rates," he said Tuesday in London.

If Athens is forced to pay interest rates on borrowing that are too high, it could push Greece into a "debt spiral," said the 79-year-old.

"That is still a danger that remains for Greece," he added.

He called for euro zone countries to go further and put in place a "guarantee mechanism." This would permit Greece or other members of the single currency, such as Spain, to borrow on favorable terms.

Soros, who is a U.S. citizen but originally from Hungary, infamously made a huge profit by betting against pound sterling in 1992 as Britain was forced to withdraw the currency from the European exchange rate mechanism.

© AFP 2015

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Contestants Vie for Miss Universe Crown in Miami on Sunday

Sunday, 25 Jan 2015 11:04 AM

A new Miss Universe will be crowned Sunday night in Miami, with participants from 88 countries taking part.The contestan . . .

'American Sniper' Continues Surge With $64.4 Million

Sunday, 25 Jan 2015 11:01 AM

Clint Eastwood's American Sniper continued its box office dominance this weekend, picking up $64.4 million and steamro . . .

TV Talk Show Pioneer Joe Franklin Dies

Sunday, 25 Jan 2015 08:59 AM

Pioneering radio and TV host Joe Franklin, who gave breaks to the likes of Al Pacino and Bill Cosby on his variety show  . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved