Greece’s finance minister announced that the economically blighted nation might need around $13 billion to keep itself afloat, setting up the possibility of a third bailout.
Despite the nearly $320 billion that has poured into Greece in two previous bailouts, the Greek economy continues to get smaller. While some of its neighbors in the euro zone have clawed their way out of recession, the Greek economy shrank by 4.5 percent in the second quarter.
“Will it get the third bailout? A decision will be made in the fall, but the answer is probably yes,” says Marketplace’s Stephen Beard from London. “The cost of letting Greece go to the wall in terms of losses on its government bonds and the contagion effect are probably too horrendous for the rest of the euro zone — and Germany, in particular — to contemplate.”
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.