The International Monetary Fund (IMF), along with its partners the European Commission and the European Central Bank, have been overseeing a series of bailouts in troubled nations such as Ireland, Spain and, most importantly, Greece. Recent months have seen a swell of enthusiasm about the forward trajectory of Greece’s financial position, despite years of chronic unemployment and crumbling Gross Domestic Product (GDP). However, according to a new report from the IMF, conditions in the troubled Southern European nation seem to be getting worse and, in time, may require additional public funds.
Poul Thomsen, the IMF economist who drafted the study, told U.K.-based news source The Telegraph that the situation is fluid and that it remains unclear how much additionalcapital Greece may need. However, he stated that the global finance agency had settled on a preliminary shortfall estimate of 9.5 billion euros for the 2015-2016 budget year. He stressed that European Union (EU) officials need to act fast in order to stem volatility or a drop of confidence in the market.
“The IMF’s policy is that the program needs to be fully financed for the 12 months ahead. What is key is that the Europeans know there is a gap and they’ll have to fill it,” Thomsen was quoted as saying. “We have a need for more money from the official sector. And there is a commitment to provide that. The Euro Group has said ‘we will do so if there is no return to markets.'”
For investors with European exposure, such as business stocks or sovereign debt securities, these developments suggest that the economic condition in the EU remains as turbulent and unpredictable as it has in the past several years. As such, folks hoping to protect themselves financially should do all they can to diversify their investments. For example, cash flow real estate is a way of utilizing alternative methods to generate personal revenue to support your portfolio. To learn about these and other ways to make money in today’s global economy, visit GreatWealthStrategies.com today.