The European Central Bank and the IMF are to loan Greece 110 Billion Euros (80B and 30B respectively) over the next three years. The hope is that Greece will be able to borrow from financial markets again by the end of 2011.What does this mean for the property market? The answer, not a great deal where foreign demand is concerned; according to reports the future is still far from certain for Greece.
In return for the financing, the Greek government must make whatever cuts are necessary to slash the country's budget deficit from its current 14% to the EU limit of 3% by 2014. The Greek workforce is already rioting over cutbacks, and it looks like they ain't seen nothing yet.
What the cash-injection does do is alleviate the immediate fears over Greece defaulting on the 8.5 billion repayment due in a fortnight.
However, the markets have been far from convinced by the plan. They believe Greece being able to borrow from the financial markets again by 2011 is optimistic.
A lot will depend on the performance of the Greek economy and how efficiently and successfully they can bring the budget deficit down.
One thing is certain, the Greek economy is in for a bumpy ride. On the other hand, this will likely bring decreasing property values, and there could be a few bargains in the offing for those after a holiday home on the med.
Source: http://www.property-abroad.com
