More and more financial experts assume that the fate of the common European currency depends heavily on the situation in Greece, Market Leader reports. in particular, it is reported tat once Greece fails to settle accounts with the IMF, the common currency is doomed to drop against the U.S. Dollar and there currencies. In this case, the experts predict EURUSD parity.
So, what is so special about the Greek factor?
According to Masterforex-V Academy, Greece is obliged to pay the IMF 1,6 billion EUR between June 5th and 19th. Still, the experts assume there is little chances that it is going to happen since Greece is currently suffering from a considerable budget deficit.
At the same time, all the recent talks between Greece and the IMF over the possibility of getting another tranche have failed so far. At the same time, the Eurozone is reluctant to sponsor Greece anymore if there are no structural reforms in the country.
Meanwhile, some experts believe that a Greek default may result in disastrous consequences for the Eurozone and even the entire worlds. They assume that once this scenario manifests itself, this is going to be like the bankruptcy of Lehman Brothers triggering panic among depositors and maybe starting the so-called domino effect when there major banks may collapse. Apparently, if this is the case, Greece will quit the Eurozone to go back to the national currency it used to have before the Euro.
Investors are getting nervous sine thy understand that if Greece does try to solve its debt problems by quitting the Eurozone, other debt-ridden European nations like Portugal , Spain and even Italy may well do the same.
