As Greeks vote to reject bailout, group calls for global bankruptcy process for countries

The people of Greece have voted against the terms of an international financial bailout even as their country faces dire economic consequences.

According to figures published by the interior ministry, nearly 62 percent of voters voted “No”, against 38 percent that voted “Yes”.

As the Greeks celebrate the No votes victory, the group, Jubilee USA Network is calling for the establishment of a global bankruptcy process for countries, warning that until that is done, more situations like that of Greece would be seen around the world.

In a statement issued in Washington DC, Sunday July 5, 2015 and copied to ghanabusinessnews.com, the Executive Director of the organization, Eric LeCompte, says “Greece is the most heavily indebted country in Europe. I agree with the International Monetary Fund that Greece needs serious debt relief and needs to extend other debt payments into the future.

“Austerity in exchange for financing doesn’t work. It’s like treating an injured person with beatings. Unless we establish a global bankruptcy process for countries, we’ll continue to see more situations like Greece around the world,” he adds.

The IMF has said Greece’s debt is unsustainable.

The referendum was held amidst continued negotiations with the country’s creditors, which have been going on for months. The referendum was held on the terms of the bailout offers that were being made to Greece.

As the economic situation bite, Greek banks were shut and capital controls were put in place since last Monday, after the European Central Bank refused to give the country more emergency funds.

Greece effectively placed a limit on ATM withdrawals to €60 a day. The country’s latest bailout expired on Tuesday and Greece missed a €1.6 billion payment deadline to the IMF.

This popular support is seen as a strengthening of the hands of the country’s political leaders to decide on what is best for the country.

Meanwhile, a crowd-funding initiated by a British man Thom Feeney to support Greece has raised over €1.8 million in eight days from more than 105,000 people.

By Emmanuel K. Dogbevi