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    Jaena Relleve
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    The Greek financial crisis began in 2009 when Greece revealed it had been understating its budget deficit for years and was banned from international borrowing. In 2010, irregularities were found in Greece's deficit reporting, prompting two bailouts totaling €240 billion from the IMF to help Greece. However, the bailouts came with conditions like budget cuts, tax increases, and reforms to make the Greek government and economy more efficient. While the bailouts aimed to prevent the crisis from spreading, Greece used much of the money to pay debts instead of supporting its economy, and the crisis continued despite the billions in assistance.

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    The Greek financial crisis began in 2009 when Greece revealed it had been understating its budget deficit for years and was banned from international borrowing. In 2010, irregularities were found in Greece's deficit reporting, prompting two bailouts totaling €240 billion from the IMF to help Greece. However, the bailouts came with conditions like budget cuts, tax increases, and reforms to make the Greek government and economy more efficient. While the bailouts aimed to prevent the crisis from spreading, Greece used much of the money to pay debts instead of supporting its economy, and the crisis continued despite the billions in assistance.

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    6 views1 page

    Greek Financial Crisis

    Uploaded by

    Jaena Relleve
    The Greek financial crisis began in 2009 when Greece revealed it had been understating its budget deficit for years and was banned from international borrowing. In 2010, irregularities were found in Greece's deficit reporting, prompting two bailouts totaling €240 billion from the IMF to help Greece. However, the bailouts came with conditions like budget cuts, tax increases, and reforms to make the Greek government and economy more efficient. While the bailouts aimed to prevent the crisis from spreading, Greece used much of the money to pay debts instead of supporting its economy, and the crisis continued despite the billions in assistance.

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    © All Rights Reserved
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    Relleve, Jaena Stefani S.

    BAMAMFI K33
    June 7, 1017

    Greek Financial Crisis

    The Global Financial crisis during 2008-2009 provoked Greece to become the center of
    the European debt. In 2009, Greece revealed to the public that it had been understating their
    deficit for quite a number of years. Since then, Greece was banned from borrowing money in the
    financial markets. This crisis was apparent in 2010 when irregularities were found on the Greek
    Excessive Deficit Procedure notifactions. In order to help Greece from their situation, the
    International Monetray Fund or the IMF issued two bailouts for Greece which eventually
    amounted to €240 billion. That is 13,324,852,800,000.00 in Philippine Peso. Consequently, these
    bailouts came with a number of conditions:
    1. Lenders imposed strict terms which resulted to deep budget cuts, as well as an increase
    in taxes
    2. They wanted to “rebuild” the economy of Greece by making their government more
    efficient and effective  simpler working methods
    3. #2 would mean that Greece would have to end their tax evasion  underpayment of tax
    4. #3 would mean that it would be easier to conduct business in Greece

    The government leaders of Greece were not happy with such conditions. The motivation
    to help Greece was due to the fear of contagion: it was said that “a restructuring of Greek debt
    could lead to a new banking crisis in EU as several banks, notably in France and Germany, had a
    high exposure to Greece” (Haan and Mik, 2013). Despite the fact that Greece received billions
    through bailouts, this did not stop the crisis from happening. The money was for Greece to
    stabilize their finances. Greece used the bailout money to pay for their overwhelming debts
    instead of it going mainly towards their economy. The motivation to help Greece was due to the
    fear of contagion:

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