Greek PM Says Country Will Not Default on Debts

New Greek PM Alexis Tsipras says his country will not default on its debts.

Addressing his first cabinet meeting since Sunday’s victory, Mr Tsipras said he would negotiate with creditors over the €240bn (£179bn; $270bn) bailout.

“We won’t get into a mutually destructive clash, but we will not continue a policy of subjection,” said the left-wing Syriza party leader.

The EU has warned his government to stick to its commitments. A default could force Greece out of the euro.

As the newly elected leader of the radical left party made his inaugural cabinet speech, Greek government bond yields rose to near record levels – reflecting investors’ concerns about short-term risks of a debt restructuring over the coming months. The Greek stock market fell 6.4%.

Greece has endured tough budget cuts in return for its 2010 bailout, negotiated with the so-called troika – the European Union, International Monetary Fund (IMF) and European Central Bank (ECB).

The economy has shrunk drastically since the 2008 global financial crisis, and increasing unemployment has thrown many Greeks into poverty.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza