Southridge Capital CEO Stephen Hicks Says Greece Should Have Accepted Original Referendum

Jul 16, 2015, 15:45 ET from Southridge Capital

RIDGEFIELD, Conn., July 16, 2015 /PRNewswire/ -- Stephen Hicks, Founder and CEO of Southridge Capital, a diversified financial holding company specializing in direct investment and advisory services to small and middle market companies, has released a statement saying that the crisis in Greece and the subsequent bailout deal is a teachable moment in today's economy.

On Thursday this week, the austerity bill that will pave the way for financial aid worth 86 billion euros ($94 billion) was approved with 229 votes in the 300-seat chamber in Greece. According to this agreement, Europe has offered Greece a bailout after its government agreed to enact deep economic reforms under close supervision by its creditors. This is the third rescue for Greece since 2010, the absence of which would have led to the country's potential exit from the currency union and would also have had major implications on Europe.

Hicks says, "The ultimate resolution of the Greek situation teaches us all a valuable lesson. The final bailout agreement that the Greeks have signed is more stringent than the original one that Greek President Alexis Tsipras recommended that the populace voted down. The truth is that when you are in a position without leverage you must evaluate the most likely alternative to the transaction placed before you. It is a game of chess whereby moves and countermoves must be estimated, and all parties must think more than one step ahead."

He adds that the Greeks tried to get a bailout from the Russians, but with the low price of oil and economic sanctions over Ukraine, that was not likely to happen. "The Greeks cannot afford to leave the Euro right now since they need foreign help. As such, they had no good alternative to a negotiated agreement and should have accepted the original proposal," says Hicks.

About Southridge Capital: Southridge Capital is a diversified financial holding company specializing in direct investment and advisory services to small and middle market companies. Since 1996 the structured finance team has made direct investment of over $1.7b into growth companies globally. Our expertise lies in our ability to customize a financing plan for the prospective client and then execute on that plan without fail. For more information, visit: www.southridge.com.

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SOURCE Southridge Capital



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