Saturday, 29 October 2011

Agreement on bailout fund

European countries agreed on finance package for saving Greece Economy. European Union agree on increasing bailout fund from 400 b to 1 trillion Euro. There was uncertainty about the package. Banks also have to sacrifice and loose huge money. This is very bad for banking sector that is already facing serious challenge due to downturn . But problem is big and Greece is not only victim of debt crises. Many other countries also have serious problems. After Greece , Italy may be next victim. Italy has big debt even bigger than Greece but main difference is that most of Italy ‘s debt is internal . There is also news that China may invest money in some scheme related to bail out fund.