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Fri 05 May 2010Athens has lost control of its economic policy
ECONOMICS:Substantial contagion has spread into the bond markets of other indebted euro states
THE GREEK bailout arose because the Athens government could no longer borrow at interest rates which permitted it to service its growing debt. If the interest rate moves sufficiently against you, and both the debt pile and future borrowing intentions are large enough, there is an interest rate above which you can no longer make the sums add up.
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