Post by arfanho7 on Feb 24, 2024 10:26:12 GMT
All sources of financing collapsed in the country. With bank nonperforming loans to total gross loans skyrocketing from percent to percent from to financial institutions were unable to provide new loans to underwrite company growth. “THE RECESSIONARY MEASURES THAT WERE TAKEN IN GREECE WERE NOT THE CAUSE OF THE CRISIS.
Even large companies that could ordinarily rely on public equity or debt markets discovered that both were effectively shut down. Cost of capital for both equity and fixed income claims increased significantly because of country risk premium. In the World Competitiveness Yearbook Ranking conducted by Egypt WhatsApp Number List the International Institute for Management Development IMD Greek business managers answered a survey question about whether cost of capital encourages business development. They gave a ranking of close to before the crisis.
To make things worse credit rating agencies imposed filters that automatically downgraded ratings of Greek corporations when Greek government bonds were downgraded as the recent case of industrial firm Ellaktor and Standard and Poor s shows. underdeveloped Greek entrepreneurs were also excluded from financing. See here my view on increasing innovation capacity in Greece. But even while the dour financing picture limited the ability of Greek companies to simulate growth in the economy another mechanism to do this could have been foreign direct investment FDI.
Even large companies that could ordinarily rely on public equity or debt markets discovered that both were effectively shut down. Cost of capital for both equity and fixed income claims increased significantly because of country risk premium. In the World Competitiveness Yearbook Ranking conducted by Egypt WhatsApp Number List the International Institute for Management Development IMD Greek business managers answered a survey question about whether cost of capital encourages business development. They gave a ranking of close to before the crisis.
To make things worse credit rating agencies imposed filters that automatically downgraded ratings of Greek corporations when Greek government bonds were downgraded as the recent case of industrial firm Ellaktor and Standard and Poor s shows. underdeveloped Greek entrepreneurs were also excluded from financing. See here my view on increasing innovation capacity in Greece. But even while the dour financing picture limited the ability of Greek companies to simulate growth in the economy another mechanism to do this could have been foreign direct investment FDI.