Greek Debt: A Brief Guide

The Greek Debt Crisis Finance 27 A brief guide How it began The crisis in Greece was arguably part of the European Debt crisis and came at the end of a decade of high structural deficits and high debt to GDP ratios Greek government debt was downgraded to junk bond status in June 2010, prompting a panic in the markets. The International Monetary Fund and the Eurozone countries agreed on a bailout loan worth 110 billion euros in May 2010 € A second loan worth $130 billion was agreed in 2011. € by 2012, fears had become widespread that Greece would exit the euro, prompting further anxiety in the markets. In January 2015, the Syriza Party formed a new government, cancelling Greece's old bailout agreement, and commencing negotiations for a new one. What were the causes? The crisis in Greece was arguably part of the European Debt crisis and came at the end of a decade of high structural deficits and high debt to GDP ratios Low GDP growth rates Government debt & fiscal imbalances Problems with Poor budget credibility as a Euro Greece's compliance and control member What it means for Greece and the Eurozone Greek decline Greece clocked growth of -6.9%, with austerity measures contributing to a worsening recession. Youth unemployment As of mid-2013, this stood at 65% Homelessness Greece clocked growth of -6.9%, with austerity measures contributing to a worsening recession. "Grexit" There have been fears about a Greek exit from the Eurozone, precipitating a wider crisis within the EU.