Chap001尤恩_国际财务管理_英文第五版精选.ppt

Europe’s Sovereign-Debt Crisis of 2010 In December of 2009 the new Greek government revealed that its budget deficit for the year would be 12.7% of GDP, not the 3.7% forecast. Investors sold off Greek government bonds and the ratings agencies downgraded them to “junk.” While Greece represents only 2.5% of euro-zone GDP, the crisis became a Europe-wide debt crisis. The challenge remains that fiscal indiscipline of one euro-zone country can escalate to a Europe-wide crisis. The Greek Drama Greece paid no premium above the German rate until late fall 2009. The Greek interest rate rose until the b