The euro commemorative summit agreed on a new rescue package for Greece. To those already granted 110 billion euros from last year Greece would receive additional 109 billion euros for overdue loans and debt from the EFSF. It comes to run times of 7.5 extended to 15 years and reduce the interest on the loans to 3.5 percent. In the same time, the private sector is contributing € 37 billion by the year 2014 the Fund.
There are additional 12.6 billion euros by buying back Greek bonds at a discount. Here is what the FDP financial expert and economist Blog Author Frank Schaeffler told Spiegel Online: “Without an exit option from the euro does not cut the debt, Greece will depend permanent from donor countries.“
According to the head of the economic experts, Professor Wolfgang Franz holds the agreed restructuring of Greek debt and it is not enough. “Any further debt would be 50 percent for Greece have been better,” he told. Professor Peter Bofinger is agrees. “The debt should have been reduced by 50 percent for the country to get on their feet and be able to return to the capital markets “.
That is the crucial point. If there are public and private creditors Greece, the loans for interest are only 3.5 percent, which is a big step forward. The Association of Taxpayers exerts considerable criticism. It defines this as negligence because to taxpayers are imposed additional liability risks for Greece amounting to € 109 billion with the involvement of the International Monetary Fund. The bank must balance and we all to work together. In Germany have € 3.3 trillion money savings, it must be somewhere in the world and people or companies that have € 3.3 trillion debt. In a book, Professor Bofinger explains the logical relationships of savings and profits. A low savings rate means high profits.
What about the 1950, from the beginning of the economic miracle? Savings rate of households because of the high monetary expenditure ratio decreased from 96.8% to 3.2%. The result is gross investment rate of 27%, net investment rate of 17%, after depreciation of 10% points.