Like in Poland, Hungary too in early 1990s faced rapid institutional change and severe economic downturn — when a reform package known as “legislative shock therapy” was announced. The main points of this package were debt restructuring and vigorous privatisation, especially for the public sector and the banking system. These changes were successfully implemented to create one of the strongest financial sectors in the region with a well governed market.
Therefore, it can be deciphered that investors have short memories — Greece will get over its current crisis and capital will start flowing again — as it happened in Russia, Poland and Hungary. Also it is a fact that ex-communist countries could only dream of the kind of support Greece is getting from its European partners. Under the plan, Euro zone nations (comprising of 16 states) would provide $570 billion, while the rest $75 billion is offered by the European Union Commission. IMF will also provide a backing of $325 billion, half of what euro zone leaders have granted.
It is an opportunity for the West European nations to get their acts together. One sometimes wonder, had the problem be with Ukraine or any other similar nation— who is also seeking EU membership, just like Greece — would it receive same kind of attention as its neighbour! It’s anybody’s speculation.
Therefore, it can be deciphered that investors have short memories — Greece will get over its current crisis and capital will start flowing again — as it happened in Russia, Poland and Hungary. Also it is a fact that ex-communist countries could only dream of the kind of support Greece is getting from its European partners. Under the plan, Euro zone nations (comprising of 16 states) would provide $570 billion, while the rest $75 billion is offered by the European Union Commission. IMF will also provide a backing of $325 billion, half of what euro zone leaders have granted.
It is an opportunity for the West European nations to get their acts together. One sometimes wonder, had the problem be with Ukraine or any other similar nation— who is also seeking EU membership, just like Greece — would it receive same kind of attention as its neighbour! It’s anybody’s speculation.
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