Reuters - Video

Edition: US | UK | IN | CN | JP

video Finance Videos

Yes or No, vote won't end Greek woes

Friday, July 03, 2015 - 02:17

The International Monetary Fund has delivered a stark warning to Greece about the huge financial hole facing the country which ever way it votes in Sunday's referendum. Kirsty Basset looks at the scale of the task.

▲ Hide Transcript

View Transcript

This is the face of Greece's economic depression. An abandoned factory, 30 mins west of Athens, lies empty. Nearby, unemployed workers fill their days playing backgammon. More than half of young people are out of work. They'll decide in a referendum on Sunday whether or not to embrace creditors' bailout terms. Greek Prime Minister Alexis Tsipras says it's a chance for Greeks to say whether they are willing to bear even more austerity. (SOUNDBITE)(Greek) ELEFSINA RESIDENT, KOSTAS PATALAS, A PENSIONER, AGED 69, LAUGHING AND SAYING: "What else? What everyone should and will vote - 'no'! 'No' to the agreement. What (else) can I vote, (can I) say yes to the agreement? Yes to more of the same? No, no I can't accept that." Greece's leaders are convinced they can negotiate a better deal if Greece votes 'no'. But the European Commission says a 'no' vote will dramatically weaken Greece's negotiating position. Whatever the outcome, the country's massive mountain of debt remains at well over 240 billion euros. That includes a loan of almost 53 billion euros under the first bailout in 2010 - and almost 142 billion euros granted two years later. Germany is by far the largest creditor. The IMF says Greece needs an extra 50 billion euros over the next three years to stay afloat. Rabobank's Jane Foley says if a deal can't be found, the situation could deteriorate, fast. (SOUNDBITE)(ENGLISH) RABOBANK JANE FOLEY "I think on a 'no' vote I think the situation for Greece and particularly Greek banks could be fairly calamitous, perhaps very quickly." The IMF concedes Greece needs significant debt relief - something the Greek government has been pushing for during months of negotiations, to no avail. (SOUNDBITE)(ENGLISH) RABOBANK JANE FOLEY "The message that the creditors want to give to Greece is: 'Well let's just get a bailout in place. You need to give signals that you are prepared to suffer austerity and try living within your means before we really talk about debt forgiveness.'" Greece's economy has shrunk 25 per cent since 2009. S&P says it would contract by another 20 per cent if it makes a distressed exit from the euro.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Yes or No, vote won't end Greek woes

Friday, July 03, 2015 - 02:17