Financial crises

A moral clause

The decision to exclude from state loan guarantees any enterprises that had outstanding debts before the coronavirus crisis, or had been funded through a state guarantee but became insolvent, was a necessary one.

The rule will ensure that strategic defaulters will not seek to take advantage of the crisis.

Further debt easing may come later, economists tell Kathimerini

Estimates pointing to a deep recession in Greece this year and a steep rise in the national debt as a result of measures to contain the coronavirus pandemic are generating questions about what will happen once the crisis subsides and raising new debt sustainability concerns. Economists asked by Kathimerini stress that Greece is armed with weapons it did not have before.

Greek economy expected to shrink by 5-10 pct this year, says finance minister

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.

Double challenge for local banks

The Greek credit system is faced with a double challenge in tackling the economic crisis caused by the coronavirus pandemic: Besides managing the new generation of bad loans, the banks will have to serve as the catalyst for the economy's emergence from the crisis, channeling the necessary cash flow into the market.

World Bank projecting Romania's economic growth at 0.3pct in 2020

The World Bank has revised significantly its estimates of the Romanian economy's advance this year, down to 0.3 percent from 3.8 percent, as projected three months ago, but growth would gradually bounce back in the second half of 2020 and further accelerate in 2021 to 4.4 percent, according to the World Bank's economic update spring 2020.