The sovereign debt disaster that took Greece by thunderstorm in 2010 began to propagate to other European markets. Within several months Ireland and Portugal had also lost access to the sovereign debt markets and had to rely on supranational loans for their financing.
The threat of further contagion was current and clear. Political leaders continued to seek measures to avert the larger markets of Spain and Italy and to stem the disaster. The European financial system became unlimited. Banks began to ration credit to the market and were found to be undercapitalized. As a way to avoid a credit crunch, the European Central Bank intervened to provide liquidity to the system. Could the eurozone endure the storm?
PUBLICATION DATE: September 20, 2012 PRODUCT #: 713034-PDF-ENG
This is just an excerpt. This case is about GLOBAL BUSINESS
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