Debt crisis

The Greek economy, hit by coronavirus restrictions, is expected to shrink by 5-10 percent this year, the country's finance minister said on Saturday.

"It seems we have been settling at a range of between 5 and 10 percentage points," Finance Minister Christos Staikouras told Open television station.

Eurozone government debt will surge this year on the coronavirus pandemic, but while another debt crisis is unlikely, large differences in indebtedness as countries emerge from the downturn could seriously test their unity.

We are living in an historic era.

The world is experiencing the greatest crisis since WWII.

The total freezing of the global economy and social life is a phenomenon that is historically unique.

The projections of analysts, economists, and international organisations point to an horrific landscape the day after the pandemic.

The problem. Mitigating the impact of the Covid-19 pandemic will require a significant increase in public spending to rescue sinking economies and further shield health systems. At the same time, tax revenues will be collapsing as long as economic activity remains suppressed. Budget deficits will inevitably swell, leading to soaring public debt.

The coronavirus pandemic has revived the acrimonious debate between eurozone countries about jointly issuing debt to meet healthcare needs and address the deep economic downturn that is set to follow.

Nine of the 19 countries that use the single currency called on March 25 for a common debt instrument issued by a European institution to fight the outbreak and its effects.

The wealthy states of Northern Europe and especially Germany, the Netherlands, and Finland continue to stubbornly refuse to adopt bold economic measures in the midst of a deadly pandemic.

A rise in borrowing costs caused by the coronavirus has halted Greek plans to tap bond markets again this year, Finance Minister Christos Staikouras said on Friday.

Greece emerged from bailouts in 2018 after a decade-long debt crisis that locked it out of bond markets for years. It has since had several successful issues, including a 15-year bond in January.

Year-end and New Years' editions of newspapers less than three months discerned an unstable and uncertain world but obviously even in one's wildest dreams one could not have imagined the intensity and weight of current conditions.

Since the second week of March, the Greek government has been attempting to delay the spread of the virus by shutting down most economic activity, ordering the closure of all shops apart from supermarkets, bakeries, petrol stations and pharmacies.

Greek banks may soon be allowed to purchase more sovereign bonds issued by the country, its finance minister said on Thursday, a step which would boost demand and push country's yields even lower.