All Eyes on Greek Economy Since Bailout

Since the European Central Bank and the International Monetary Fund (IMF) announced the details of the bailout of the Greek economy, all eyes have been on the country to see what effect this cash injection will have, and the ripple effect throughout the rest of the European Union. What are the signs so far and what does this mean for anyone with property in Greece, asks property portal House Sales Greece (http://www.housesalesgreece.com/)?

At the beginning of May, the details of the long-awaited bailout of Greece and its economy were laid out: the European Central Bank agreed to loan Greece 80 Billion Euros and the IMF said it would put forward 30 Billion Euros as a loan, totalling 110 Billion Euros which will be loaned over three years. With this cash injection came the hope that Greece would again be able to borrow from the financial markets by the end of 2011. A loan of such magnitude does not come without its pre-requisites, however. In return for the bailout cash, Greece has to make some serious cuts in order to reduce its massive budget deficit from 14% to the EU limit of 3% by 2014. The austerity measures already outlined by the Greek government which have caused such unrest in the country are set to be broadened further.

In the short-term the promise of the bailout cash helped ease fears that Greece would be forced to default on its obligations to repay 8.5 Billion Euros in late May - although only just: Greece came perilously close to defaulting even given the cash injection. Market analysts are now unconvinced that Greece will be able to borrow from the financial markets as early as 2011 given that the bailout has not yet proved to be the miracle cure that some hoped it would be.

What does all this mean for property sales in Greece? Well, understandably the real estate market is in stasis during what is a critical time economically for Greece but it is not in freefall. While the future is still uncertain for Greece, foreign demand for Greek properties still exists; some property purchasers may be holding off for the time being while the next stage of austerity measures becomes clear. Of course there are always those that have to sell Greek property no matter what is happening in the market around them, which could create some property bargains.

For the next few months, however, all eyes will continue to be on Greece – both its economy and its property market. For the latest in Greek property bargains, visit http://www.housesalesgreece.com/.