Although long awaited €130 billion ($170 billion) bailout deal may help Greece solve its debt problems, there turned out to be certain worries about the difficulties with the new bailout measures.
According to the deal, Greece will have to implement strict austerity measures, which may be a serious problem, depending on the final results of April’s election. With Greece entering its fifth year of recession, the new program could push the country even deeper into the recession. As a result, Greece may face artificially postponed default on its debts.
It should be noted that the bailout deal must be first approved by the Dutch and German parliaments. And they are quite sceptical about the continuation of funding troubled Greece.
Meanwhile, Jose Manuel Barroso, the president of the European Commission is sure in its necessity, as the deal “will definitely close the door to an uncontrolled default that would be a disaster for Greece and its people”.
On that news Canadian bond yields went up and hit a point from where we should expect fixed mortgage rates to go up 10-20Bps (0.10-0.20%) during this week. Many lenders have already adjusted their 5 years fixed rates accordingly. Please talk to your mortgage broker and lock lowest mortgage rates for up to 120days.
