1. Germany, Greece and Existing Debt
... repaying their debts but I think Germany realizes it is in their best interest to continue to loan to them. Germany and other Northern European economies are somewhat stuck in a tricky situation here. They have been providing loans to the Greek government and its difficult to just stop. They have incentive to keep loaning to them due to the fact that they started loaning ... the shared Euro, a further Greek deterioration could affect the German banks and cause their currency value to drop. This would decrease asset value in real terms and would increase the costs of necessary parts of t...
- Word Count: 731
- Approx Pages: 3
- Grade Level: High School