I have been watching what is unfolding in Greece and I can’t help feeling a certain level of fear that this could also happen in Kenya in the not so far future if the government does not control its appetite for debt and spending.
Mark you, Greece is a developed country and I do not understand how it can not raise Euro 1.7b approx- Ksh 250 b, is it a deliberate move so as to get out of the EU?
Anyway nothing puzzles God as Mutale (weekend of carousal) would aptly say
Missing Tuesday’s payment won’t necessarily put Greece in default with the I.M.F. The fund, if it follows tradition in such matters, could buy time by simply declaring Greece to be in arrears.
Missing the payment, though, could make it even more difficult for the European Central Bank to continue extending emergency loans to Greek banks. The central bank is allowed to finance only solvent banks. Because Greece’s banks and the government are tightly linked, it would be hard to consider Greek banks solvent when their government is not paying its bills.
From my understanding the ECB has already stopped lending to the Greek commercial bank leading to their temporary closure. There is also talk that when they re-open daily withdrawals will be limited to a max of Euro 60 per day.
The euro is trading at 110 to kshs. So that amount you quoted is wrong inafaa kuwa about 190 billion kshs. Greece walijikaanga by offering a lot of benefits to public sector workers halafu that 2004 Athens Olympics increased the government’s debt substantially. It is sad but bado utapata Waafrika wengine stupid wanadrown kwa Mediterranean trying to reach there.
What ati wameshindwa kulipa only 250 billion Kenya Shillings, na saa hizo sisi tushakusanya 1 trillion kenya shillings, bado hatujaweka:
Approx. 120 billion kes - tax evaded
Approx. 150 million p.m. - capital gains tax - took effect May 2015
Real Estate - 20000 large property owners to start paying tax from next month - huge money
Si tuswap na greece waone tukuwalimia
This has been due to poor economic and political policies. Hata sisi we are not far away from such a scenario especially, after we factor in the rampant corruption that is currently going on. Huu ni msiba wa kujitakia.