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Greece Crisis

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Greece experienced a debt crisis when its deficit exceeded 12.7% of GDP and national debt reached over 300 billion Euros. The Greek government requested a bailout package from the EU and IMF worth €45 billion to help repay imminent debts and negotiate financing. However, bailing out Greece was challenging under EU laws requiring deficit levels below 3% of GDP. The crisis highlighted Greece as the eurozone's weakest economy and hurt the EU's reputation, threatening the stability of the single European currency.

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Financial crisis of Greece
President:   Karolos Papoulias (2005) Prime Minister:   George Papandreou (2009) Population (2009 est.):  10,737,428 (growth rate: 0.1%); birth rate: 9.4/1000 ; Monetary unit:  Euro
Greece, a developed country with a high standard of living and very high Human Development Index; A top five tourist destination since at least the 80s Greece had shifted to the Euro in 2001.
Economic summary:  GDP (2009est.): $341 billion per capita $32,100   Real growth rate:  4%.   Inflation (2009 est.) :   1.2% Unemployment (2009 est.) : 9 % Exports:  $25.76 billion Imports:   $79.92 billion
Greece crisis
Debt Crisis of Greece Greek government funding crisis
Greece has a 12.7% deficit of its GDP. National debt has exceeded 300 billion Euros. Greece has US$ 25 billion dollar of its debt that must be immediately re-financed Debt crisis
The Greek government requested that the EU/IMF bailout package (made of relatively high-interest loans) be activated. The Euro zone legally requires that national deficit be within a 3% limit if GDP. With Greece’s deficit of 12.7% of the GDP, the European Central Bank is legally not allowed to engineer a typical bail-out, partly due to political aspects of the EU treaty.
The size of the bailout is expected to be €45 billion ($61 billion) and it is expected to take three weeks to negotiate With a payout within weeks of €8.5 billion of Greek bonds becoming due for repayment .
Fitch ratings has called Greece as “Eurozone’s weakest member” Greece’s debt is 113%of its GDP.
Greek Government Funding Crisis : The Greek economy was one of the fastest growing in the euro zone during the 2000s From 2000 to 2007 it grew at an annual rate of 4.2% Estimated tax evasion costs the Greek government over $20 billion per year. Investors placed about €20bn ($28bn, £17bn) in orders for the five-year, fixed-rate bond
Greek crisis hurts EU reputation A default by one member of the 27 participants in the Euro-zone will lead to the collapse of the Euro Countries of the European Union are allocating 20 to 25 billion Euros to Greece as a rescue package to help it get over the financial crisis Expectations of a weaker Euro, dollar becomes stronger relative the Euro
Greece must change or sink !
Real estate industry Greek political parties Systemic corruption and “clientelism Tax inspectorate Health sector
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Greece Crisis

  • 1.  
  • 3. President:   Karolos Papoulias (2005) Prime Minister:   George Papandreou (2009) Population (2009 est.):  10,737,428 (growth rate: 0.1%); birth rate: 9.4/1000 ; Monetary unit:  Euro
  • 4. Greece, a developed country with a high standard of living and very high Human Development Index; A top five tourist destination since at least the 80s Greece had shifted to the Euro in 2001.
  • 5. Economic summary:  GDP (2009est.): $341 billion per capita $32,100   Real growth rate:  4%.   Inflation (2009 est.) :   1.2% Unemployment (2009 est.) : 9 % Exports:  $25.76 billion Imports:   $79.92 billion
  • 7. Debt Crisis of Greece Greek government funding crisis
  • 8. Greece has a 12.7% deficit of its GDP. National debt has exceeded 300 billion Euros. Greece has US$ 25 billion dollar of its debt that must be immediately re-financed Debt crisis
  • 9. The Greek government requested that the EU/IMF bailout package (made of relatively high-interest loans) be activated. The Euro zone legally requires that national deficit be within a 3% limit if GDP. With Greece’s deficit of 12.7% of the GDP, the European Central Bank is legally not allowed to engineer a typical bail-out, partly due to political aspects of the EU treaty.
  • 10. The size of the bailout is expected to be €45 billion ($61 billion) and it is expected to take three weeks to negotiate With a payout within weeks of €8.5 billion of Greek bonds becoming due for repayment .
  • 11. Fitch ratings has called Greece as “Eurozone’s weakest member” Greece’s debt is 113%of its GDP.
  • 12. Greek Government Funding Crisis : The Greek economy was one of the fastest growing in the euro zone during the 2000s From 2000 to 2007 it grew at an annual rate of 4.2% Estimated tax evasion costs the Greek government over $20 billion per year. Investors placed about €20bn ($28bn, £17bn) in orders for the five-year, fixed-rate bond
  • 13. Greek crisis hurts EU reputation A default by one member of the 27 participants in the Euro-zone will lead to the collapse of the Euro Countries of the European Union are allocating 20 to 25 billion Euros to Greece as a rescue package to help it get over the financial crisis Expectations of a weaker Euro, dollar becomes stronger relative the Euro
  • 14. Greece must change or sink !
  • 15. Real estate industry Greek political parties Systemic corruption and “clientelism Tax inspectorate Health sector