NUCLEAR POWER IN BELARUS AND WORLDWIDE
The problem of the old debts that Greece has cannot be resolved with new money. The opinion was voiced by Professor Mikhail Kovalyov, Doctor of Physics and Mathematics, Dean of the Economic Faculty of the Belarusian State University, on 13 July as he commented on the decision made by European Union leaders regarding the Greek debt problem.
Mikhail Kovalyov said: “The right thing for the European Union to do would be a radical decision similar to the treatment Cyprus received: a hardline decision, one third of the debts are forgiven, the rest is equally distributed between everyone that Greece owes to. But the European Union is not capable of making the decision for now. The EU still tries to avoid problems and use new money to resolve the problem of old debts. However, the policy only inflates debts without resolving the problem.”
The Dean of the Economic Faculty said he believes that the European Union will decide in favor of giving new money to Greece for the sake of repaying the old debts. “The decision only delays the resolution of the problem of who has to repay the debts in the end. It is clear that no country can repay so much debt just like Portugal, Spain, Italy and many other countries of the European Union cannot do it,” believes the expert.
Mikhail Kovalyov reminded that Greece owes about $350 billion. The bulk of the money has been borrowed from the European Stability Mechanism, the European Central Bank, and the International Monetary Fund. Private investors have also lent money to Greece. “The key point of the argument is to whom the country will not repay debts. Everyone understands that it will be impossible to repay two thirds of the debt,” stated the professor.
Mikhail Kovalyov was confident that Belarus will in no way be affected by the situation in Greece. “First of all, Greeks owe us virtually nothing. Second, Greece’s example has less similarity with the situation in Belarus because our debts are many times less than that,” he specified.
According to the expert, Belarusians face no economic risks during pleasure trips to Greece. “There are no problems with withdrawing money from ATMs. The restrictions that exist over there apply to Greece citizens only,” noted Mikhail Kovalyov. As far as prices for services in the country still affected by the crisis are concerned, the professor believes that Greeks may be inclined to reduce the prices.
On 13 July after many hours of talks leaders of the European Union member states decided to keep Greece as part of the currency union. The final agreement has yet to be discussed. In the near future the eurozone finance ministers are expected to resume negotiations on fine details of settling the Greek debt and on the possibility of granting a bridge loan to Greece for the sake of covering urgent financial needs.
Mikhail Kovalyov said: “The right thing for the European Union to do would be a radical decision similar to the treatment Cyprus received: a hardline decision, one third of the debts are forgiven, the rest is equally distributed between everyone that Greece owes to. But the European Union is not capable of making the decision for now. The EU still tries to avoid problems and use new money to resolve the problem of old debts. However, the policy only inflates debts without resolving the problem.”
The Dean of the Economic Faculty said he believes that the European Union will decide in favor of giving new money to Greece for the sake of repaying the old debts. “The decision only delays the resolution of the problem of who has to repay the debts in the end. It is clear that no country can repay so much debt just like Portugal, Spain, Italy and many other countries of the European Union cannot do it,” believes the expert.
Mikhail Kovalyov reminded that Greece owes about $350 billion. The bulk of the money has been borrowed from the European Stability Mechanism, the European Central Bank, and the International Monetary Fund. Private investors have also lent money to Greece. “The key point of the argument is to whom the country will not repay debts. Everyone understands that it will be impossible to repay two thirds of the debt,” stated the professor.
Mikhail Kovalyov was confident that Belarus will in no way be affected by the situation in Greece. “First of all, Greeks owe us virtually nothing. Second, Greece’s example has less similarity with the situation in Belarus because our debts are many times less than that,” he specified.
According to the expert, Belarusians face no economic risks during pleasure trips to Greece. “There are no problems with withdrawing money from ATMs. The restrictions that exist over there apply to Greece citizens only,” noted Mikhail Kovalyov. As far as prices for services in the country still affected by the crisis are concerned, the professor believes that Greeks may be inclined to reduce the prices.
On 13 July after many hours of talks leaders of the European Union member states decided to keep Greece as part of the currency union. The final agreement has yet to be discussed. In the near future the eurozone finance ministers are expected to resume negotiations on fine details of settling the Greek debt and on the possibility of granting a bridge loan to Greece for the sake of covering urgent financial needs.
