Greece Secures Second Bailout

Greece has avoided default through a second EU bailout in what has been labelled the biggest sovereign restructuring in history. This is on the back of quantitative easing employed by the ECB last month in the form of cheap loans to banks which has effectively subsidised their losses (or “haircuts”) in respect of Greece.  

Greece has effectively reduced its debt by approximately one third but it is still believed by many that the level of debt remaining is unsustainable and that it is only a matter of time before Greece requires further funding from the European Union.

Many businessmen continue to move their money out of Greece with billions being channelled overseas, mainly to the UK which is considered a safe haven. In particular, there has been a large influx of Greeks investing in property in London in early 2012. Over 70 Billion Euros have been withdrawn from Greece over the past 2 years.