greek crisis

Wednesday 3 May 2023Y Sai Sailesh 1

GREEK CRISIS AND ANALYSIS

Presented by :- NAME: Y Sai Sailesh



• Define Greece Crisis• Measures Adopted• Public Support for the measures• Financial Crisis in Greece • Causes of Financial Crisis• The Troika & The Greek Responses• Solutions• Impact of Crisis on India

CONTENTS


WHAT IS THIS GREEK CRISIS?

• Greek crisis is a phenomenon which had started long back in 2009

• Greek loan from IMF had been accumulating over the years & Greece was unable to pay them back

• This huge amount of debt on the government of Greece is called Greek crisis



WHAT IS THE WAY OUT?


MEASURES ADOPTED

• Bailout packages

• Austerity measures • Improving the economy

• Fight against corruption and tax evasion


• Unpopular austerity measures • Premature election in December 2014 New

government refused to accept the terms of agreement • Political uncertainty led to the suspension of

remaining tranche of aid • A negotiation between the parties failed to end the

impasse

Outcome of the measures


FINANCIAL CRISIS IN GREECE • Government overspending with its national debt is $413.6 billion• Paying out salaries on the government dime, with

huge holiday bonuses• Employees were paid a 14-month year instead of

12 months• Also, the extra money gave many Greeks in their

early retirement

• One of the worst countries with debt in Europe• National debt, at €300 billion (aka $413.6 billion),

is larger than the country's economy• Prediction estimated that the national debt will

reach 120% of GDP in 2010• The country's deficit is 12.7% of its national

economy


Public debt: • 126.8% of GDP 2009 increased to 144% of GDP

2010

Inflation: • 1.2% 2009 increased to 4.5% 2010

Unemployment rate: • 9.4% 2009 increased to 12% 2010 Current Account Balance: • ($34.43)billion 2009 ($17.1) billion 2010

CONSEQUENCES OF FINANCIAL CRISIS



THE TROIKA

• The IMF gave Greece a bailout of Euro 110 billion with conditions of austerity imposed on them• A year later a new package with additional Euro 130

billion introduced• To be effective till December 2014• Additional Euro 8.2 billion given by IMF to tide over

the problem till March 2016


What Greece implemented

• Raise taxes on fuel, tobacco, and alcohol

• Raise the retirement age by 2 years

• Decrease government spending

• Recapitalization of banks


THE GREEK RESPONSE AFTER MEASURES • 2013 and 2014 have been high austerity years and

Greece actually achieved a fiscal surplus• Created confidence in the market and was actually

able to get more debt for its bonds from private investors in this period• But in December 2014, snap elections were held and

the Syriza led Government came to power refusing to accept the terms and conditions of the package signed by their predecessors• Troika suspended all further payments till such a time

that some clarifications came in


• India is not directly exposed to Greece• India’s software and engineering exports

may take a hit • the country may also face larger capital

outflows due to a weaker euro

IMPACT OF CRISIS ON INDIA


• As we discussed due to over public expenditure and over borrowed Greece was in a verge of default• Now Greece govt. is taking austerity measures to

bring down the deficit to 0.9% of GDP • But due to excessive expenditure cut and

unemployment the disposal income of public will be reduced• The EU,IMF, are lending to Greece to solve

underlying problem and maximum amount is spent on repayments of debts

CONCLUSION


• Wikipedia• Times Of India• Financial Times• BBC

BIBILOGRAPHY


THANK YOU

Date post:	12-Apr-2017
Category:	Economy & Finance
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greek crisis

Economy & Finance