Greece Needs Second Financial Bailout?
Since Monday, following the collapse of the banking shares, the European stock markets have been contributed with a drop down. The investors were quite worried in regard to Greece needing a second financial bailout in just a year’s time.
However, there have been reports that Greece no more is considering to use euro, but still investors are anxious to know if it needs more assistance from the eurozone and the International Monetary Fund. Reason behind this is their un-ability to tap bond markets.
The euro presently is found to be under pressure and there are few stocks also that are being pressurized due to the restructuring of Greece's debt woes.
In this regard, Carl Campus, an analyst at BMO Capital Markets, said "Uncertainty over new bailout terms for Greece, and their implications for Portugal and Ireland, remain a dark cloud in the region".
After acknowledgement from the EU officials regarding Greece needing more help, many investors have a changed percept for them. For many, this restructuring of Greece's debt is just inevitable.
Therefore by now, the Greek bonds holders have to admit that the value of their assets instead of being the one when they first bought them is now totally different.