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May 31st, 2012 
FAKE NEWS for the Zionist agenda If the Greek government faces bankruptcy and fails to repay its debts, including EUR 240 billion in bailout loans it has already received from the International Monetary Fund (IMF) and the European Union, the lending banks will lose their financial credits in global markets, a recent report by the state-run BBC Persian television channel said, citing analysts.
These banks have already waived more than half of the country’s debts, they added.
Also, due to being at the risk of leaving the euro, depositors in other eurozone countries such as Portugal, Spain, and Italy may eventually move their investments to banks in more economically-stable countries like Germany, sparking a banking crisis in southern Europe.
If Greece fails to reimburse its creditors, investors will worry about the recurrence of the same phenomenon in other European countries, specifically countries like Italy with crippling debts or Spain, which has a weakened economy.
Investors are also reluctant to buy the bonds of the countries with weak and battered economies, preventing those states from generating money, without which it is impossible to pay off their debts that would eventually turn into a vicious circle with catastrophic results.
Eurozone finance ministers are set to agree on a permanent bailout fund of maximum EUR 700 billion starting to be used in July to tackle the consequences of Greece’s potential bankruptcy and to prevent the unwelcome prospect from spreading to other countries.
If Greece is forced to leave the euro, these potential scenarios may even have more disastrous repercussions.
The country is the epicenter of the eurozone debt crisis and is experiencing its fifth year of recession. One in every five Greek workers is unemployed, banks are in a shaky position, and pensions and salaries have been slashed by up to 40 percent.
Latest statistics show that the Greek economy has lost 6.2 percent in the first quarter of 2012. Greece could go bankrupt by the end of June if international lenders refuse to prop the country up with a EUR-130-billion bailout fund to keep it afloat and inside the eurozone.
Following inconclusive general election on May 6, Greeks will head to the polls for a second time on June 17 in a development that could determine whether the country should continue to receive IMF funds and stay in the eurozone.
MHB/GJH/HN
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