It has finally been announced that Eurozone finance ministers have agreed a €130 billion bailout for Greece, the second bailout the debt laden country has received. In return for this huge amount of money the Greeks have promised to reduce their debt to 120.5% of its Gross Domestic Product (GDP) by 2020 and have also accepted an “enhanced and permanent” EU monitoring presence. The Greeks needed this money before the middle of March when their maturing loans were due, however to many this new bailout seems like the International Monetary Fund (IMF) and the EU are just throwing more money at a problem which may not get any better while in Europe the finance traders are stating that this agreement shows strong protection of member states. Regardless of the long term outcome with the Greek debt issues one thing is likely; Sterling Euro exchange rates will be volatile as the outcome unfolds.
From the UK’s point of view it is rumoured that Britain will have to contribute around £10 billion of the bailout funds at a time when the country is close to falling into recession many are asking can we afford this? The answer could be no, but we also can’t let them fail as a collapse in the Eurozone could have damaging effects on the UK with Europe our biggest trade partner. So, while this news is mainly positive for the Euro it also could have a positive impact on the Sterling exchange rates.
If you would like to find out how this news could effect your currency transfer speak to your currency broker today so they can discuss your requriements and the options available to you. Call us today on 0800 328 5884 or email us on email@example.com