No matter how big or small; debt is debt. Individuals may face rising household debts, businesses may be forced into liquidation, and even large nations such as Greece may find themselves spiralling into the consuming black hole of insolvency.
Insolvency Services Australia has conducted a case study to bring you the facts and causes that led to the weakening of the Greek economy, and demonstrates how without effective and strategic financial management strategies in place, anyone can fall into debt…
By the end of 2009, as a result of a combination of international and local factors, the Greek economy faced its most severe crisis since 1974 as the Greek government revised its deficit from a prediction of 3.7% in early 2009 and 6% in September 2009, to 12.7% of gross domestic product (GDP).
In order to maintain (what appeared to be) a stable financial state, Greece sought to access instant injections of funds by establishing agreements across Europe. Banks supplied cash to Greece in advance in exchange for future payments; all of which were hidden and ‘kept off the books’ to prevent Greece’s insolvency from reaching the public eye.
The problem? Just like any individual or company who borrows excessive amounts of money, Greece found itself accumulating great amounts of sovereign debt, with public debt figures forecast to reach 120% of the GDP during 2010. Greece was forced to implement harsh controls on the nation in order to give itself the chance to improve its tragic financial state, only to receive insurmountable levels of backlash and social unrest from its citizens.
Greece exited its six-year recession in the second quarter of 2014 with an optimistic return to international markets in April 2014. However, 2015 has seen Greece’s economy spiralling back down, with current debt figures now equal to 177% of the country’s GDP; a level many economists regard as unsustainable.
At Insolvency Services Australia, we can see that just like Greece, excessive borrowing and poor financial management can cause anyone to fall into debt. Economists worldwide would suggest seeking the help of professionals at the first sign of insolvency to prevent your situation from worsening.
So contact Insolvency Services Australia today. We will work closely with you to observe and manage your finances, advise you of your financial options, and see you through to the end of your process and on your way toward a debt free future.
At ISA, we understand that you are already struggling with your finances, so we offer our professional services for the lowest price guaranteed! Call our 24/7 hotline at any time that conveniences you, on 1800 003 883.