Greek Central Bank news in Urdu Hindi . The Greek Central Bank warned that if the debt talks do not succeed there is going to be a financial collapse. Greece might become the first country to fall out of Eurozone.
The Greek Central Bank’s public statement was made to emphasize the apprehensions regarding the friction between Greece and its creditors. Only two weeks are left before the repayment to International Monetary Fund becomes due.
If the deal failed then it would lead to a Greek default and then eventually fallout from the euro zone and later probably from the European Union. This would lead to rising inflation and exchange rate crisis. It would lead to a recession and the income levels would fall down. In short, the Greek economy would collapse.
The aim of current negotiations is to provide Euros to Greece so that they can pay the salaries and loans due. But the friction between the government and creditors is a great hurdle in achieving this aim. Chancellor of Austria, Werner Faymann said that he is going to visit Athens to make a settlement between Greece and its creditors.
A senior official of European Union said that there is little chance of compromise between the two parties within this week. There is a gap between Greece and the institutions. Both the parties have a different point of view and there is little chance that they would agree on a single point. This gap is not only about the fiscal policy but also about the pensions and tax systems.
Whether the European Central Bank would keep on aiding Greece’s is a question which the investors have been waiting to get answered. The central bank has been helping Greece with the emergency funding program. But it’s not clear whether it will reduce this support or not.
If the Greek ministers fail to agree on a deal with the creditors, the Eurozone leaders may arrange a meeting to discuss the fate of Greece and most probably to find a solution to the problem.