Greece and its creditors of Euro Zone have failed to reach on any agreement in the most important talk to prevent a Greek default. The EU has called an emergency meeting of the EU state heads on the issue on Monday just eight days remaining for the Greek repayment of 1.6 billion Euros to IMF. The European Council President Donald Tusk revealed that the heads of state meeting has to find a political solution to the crisis. The President told that it is now time to “urgently discuss” the Greek crisis “at the highest political level”. Greece was demanding for a political solution while ruling out austerity measures. The Financial Times of London quoted m
Panic withdrawals of bank deposits associated with economic crisis are engulfing Greek economy like a financial tsunami. Early hours after the failure of the Luxembourg meeting indicate that people are withdrawing deposits from banks quickly. According to the Greek central bank, depositors pulled out more than 1 billion Euros on Thursday from the country’s four large banks. This means that the total withdrawal for the week is 3 billion Euros which is three times the average weekly withdrawal over the past two months. Greece’s debt commitment to IMF for this month is 1.6 billion Euros. Since the nature of the crisis has percolated into the banking system, the
Important events on the Greek crisis are coming quickly. An anti austerity rally is taking place in Athens just before the decisive Euro zone Finance Ministers meeting at Luxembourg on June 18th. At Luxembourg, Greece and its bailout financers of the Euro zone are about to start an important and final phase of discussion for extending financial help to Athens. This phase may extend for the next one month, within which both parties should come to a consensus. In the absence of such a consensus Greece have to make default and exit from the Euro zone. Such an outcome will add uncertainty for Euro zone as well as for the global economy. Greece has to make an immediate payment of
The war of words between, Europe’s potential defaulter –Greece and its creditors goes unending. After heated exchanges of words, both parties are meeting in Luxembourg on Thursday to find a way out of the problem. Greece immediately needs 7.2 billion Euros to repay its debt to the IMF. Already, the IMF has pulled out from the present talk after Athens declined to undertake some serious expenditure cutting suggested by the Fund. If the remaining creditors in the field, - the European Council and the ECB, are not extending new loans, Greece will default. Then, a Greek exit from the Eurozone becomes unavoidable. Here, Greece will become the first country to exit fro
During the first ten days of this month, China has made some ultra speed moves on Myanmar. Two important moves happened during the first two weeks of June. First was the visit made by the former human right activist and pro democracy leader, Aung Sann Suu Kyi’s to China. Second was the PLA’s military exercise - land and air mode, near Myanmar border. Myanmar is very important for China, in its dreamt reach to the Indian Ocean. An easy look into the map will show that there are only two land route options for China to put its leg into the Indian Ocean- Pakistan and Myanmar. The other option – the risky route through Pakistan has less attraction because of sec
Europe’s ailing economy- Greece has further closed in on an inevitable default. Greece on late Friday has rejected a plan proposed by its creditors – the IMF and the European Council on conditions for the restructuring of loans. Greece needs immediate money to repay its past debt to the creditors as well as emergency funds to run basic services. The tussle between the Greek political leadership and the creditors were continuing over the last couple of weeks, with the creditors expecting Greece will come out with a plan that include stricter austerity at home. On Thursday, the IMF that has provided one of the most concessional loans to Athens last year has walked
The Global Economic Prospects 2015 by the World Bank forecasts that with the exception of India, all other major economies have fallen into a major slow down. It predicts that the exuberance of the developing world has almost finished in reviving the global economy. The World Bank has reduced the target growth rate of the world economy at 2.8 per cent for 2015. Adverse conditions indicate that the world economy is slipping into a slowdown quicker than expected. Developing word is facing a structural slow down which may last for many years to come. Hence the developed economies like the US have to support the global economic revival. In an analytical part, the Rep
The world's oil sector is undergoing some tectonic shift; the US is the largest crude producer now, overtaking the OPEC heavyweight Saudi. US, because of the shale revolution, has also pushed the Russians to the second position to become the largest producer of oil and natural gas combined. According to world energy giant, BP’s energy report, the US has recorded its highest annual oil production in 2014, surpassing the previous record achieved in 1970. British Petroleum’s report –‘Statistical Review of World Energy’; which is considered to be an authentic data card on world’s energy sector, brings some other tectonic shifts besides the US ma
In a historical decision, the world’s top seven industrialized countries –the G7 has decided to decarbonise their economies. The group has declared a plan to phase out fossil fuel use in phases with a whopping 70 per cent cut by 2050. This is the first time that an international grouping comes out with a fossil fuel phase out plan at a time when there are rising reports about the appearance of climate change catastrophes from different parts of the world. G7, the elite club of industrialized countries without Russia, is meeting in the scenic Bavarian Alpine place of Schloss Elmau, Germany. Bavaria, the largest German province is known for Alpine tourism and its ann
World’s second largest economy and emerging market giant, China registered an uneasy low inflation of 1.2 per cent. According to the data released by the National Bureau of Statistics, the economy has registered a further decline in its Consumer Price Index compared to the 1.5 per cent inflation experienced in April. The low inflation for China given its inflation target of 3 per cent is not good news for its growth trend. Deflationary trends are just hinting the arrival of slow growth. China expects a mutually combatable GDP growth rate of 7 per cent and inflation rate of 3 percent. The slowing prices are strongly visible in manufactured items. The producers’ pric
Dictionary on Indian Economy
- Logic of withdrawing Rs 1000 and Rs 500 notes
- Raghuram Rajan: The Gladiator returns to Chicago
- Why the GST reform is transformational?
- Good intention but poor thinking - what troubles demonetization?
- India Black Money Report: CBI underestimates black money at Rs 25 lakh crore
- High interest rate rather than inflation is the macroeconomic problem for India right now
- Japan’s first trade deficit in 30 years is part of the Global Shift
- Why we need an emergency monetization plan as well?
- Arvind Subramanian rocks with 'Chakravyuha' in Economic Survey
- NREGS: give respect to the tax payer’s money