Home > Deficit, Europe, Greece > Timeline: Greece’s debt crisis

Timeline: Greece’s debt crisis

May 11, 2011


Here is a timeline of economic events in Greece since 2010:

Jan 2010 – Greece unveils stability program on Jan 14, saying it will aim to cut its budget gap to 2.8 percent of GDP in 2012 from 12.7 percent in 2009.

Feb – Greece must refinance 54 billion euros ($66.6 billion) of debt, with a crunch in Q2 as more than 20 billion euros becomes due and market yields for Greek debt soar.

March 5 – Package of public sector pay cuts and tax increases is passed to save an extra 4.8 billion euros. VAT to rise 2 percentage points to 21 percent; state-funded pensions frozen in 2010.

April 11 — Euro zone finance ministers approve 30 billion euros ($40.67 billion) emergency aid mechanism for Greece.

April 15 – Greek parliament passes law that seeks to tackle tax evasion and shift tax burden to higher earners.

April 22 – Eurostat says Greece’s 2009 budget deficit is 13.6 percent of GDP, not 12.7 percent as reported earlier.

April 23 – Prime Minister George Papandreou asks for activation of an EU/IMF aid package.

May 2 – Prime Minister Papandreou says Greece has sealed deal with EU and IMF, opening door to a bailout in return for extra budget cuts of 30 billion euros over three years.

— The aid package amounts to 110 billion euros over three years and represents the first rescue of a member of the then 16-nation euro zone.

May 4/5 – Public sector workers stage 48-hour nationwide strike. Three people are killed when a bank is set on fire.

May 6 – Greek parliament approves latest austerity bill.

May 9 – The IMF unanimously approves its part of the rescue loans, with 5.5 billion euros being provided immediately.

May 10 – Global policymakers install an emergency safety net worth about $1 trillion to bolster financial markets and prevent the Greek crisis from damaging the euro.

— The package consists of 440 billion euros in guarantees from euro zone states, plus 60 billion euros in European debt instruments. EU finance ministers say the IMF will contribute a further 250 billion euros.

May 18 – Greece receives a 14.5 billion euro ($18.7 billion) loan from the EU and can now repay its immediate debt.

July 7 – Greek parliament passes pension reform, a key requirement of the EU/IMF deal, cutting benefits, curbing widespread early retirement and raising women’s retirement age from 60 to match men at 65.

Aug 5 – EU and IMF inspectors give Greece the green light for a fresh 9 billion euro tranche from the bailout.

September – The IMF says Greece is ahead of schedule in economic reform and it will disburse an additional 2.57 billion euros under a standby loan.

Oct 4 – Greece submits a 2011 draft budget to parliament pledging to cut the 2011 budget deficit faster than agreed in the IMF/EU bailout deal.

Jan 2011 – Fitch becomes the third rating agency to cut Greek debt to “junk” status after S&P and Moody’s.

Feb 11 – EU and IMF inspectors approve a fresh tranche of 15 billion euros of bailout funds, but warn its fiscal program could fail unless it accelerates reforms and scales up privatizations.

April 8 – Eurogroup Chairman Jean-Claude Juncker warns Greece of the importance of controlling spending, a day after news that the country’s 2010 budget deficit overshot forecasts at over 10 percent of GDP.

April 15 – Greece presents new fiscal and privatization plans to convince investors it can meet the terms of an EU/IMF bailout and avoid restructuring its debt.

April 20 – Greece says it still plans to issue bonds again by early 2012 as the cost of insuring Greek five-year government paper shoots to a record high.

May 2 – Finance Minister George Papaconstantinou again rules out a debt restructuring, adding that he has just “expressed the hope” that the EU and the IMF will agree to extend bailout loan repayments.

May 7 – Papandreou denies there is even unofficial discussion over Greece quitting the euro zone and asks that his troubled country be “left alone to finish its task.”

May 9 – Standard and Poor’s cuts Greece’s credit rating further into junk territory to B, one notch above Pakistan’s.

May 11 – EU and IMF inspectors arrive in Athens to press Greece to shore up its finances and determine if the debt-choked country will get a fifth aid tranche of 12 billion euros.

— The visit will also help determine if Greece should be given improved loan terms or more aid to avoid debt restructuring.

— About 20,000 protesters march to parliament to mark a nationwide strike against wage cuts and tax hikes, a number smaller than previous protests.

  1. Sebring
    June 18, 2011 at 8:22 pm

    Most of protests are Staged and very well Orchestrated, they pretend fighting but do not hurt each other. This is worth it to get hundreds of billions from EU. Greeks are very smart; the deception started with the Trojan Horse and is going on with very well orchestrated “PROTESTS”. If you want Greece to be paid off, for the Enormous Army, Universal Free Health Care, Lucrative Pensions, and Taxes that they never Pay, then you pay them by yourself, PAY THEM OFF, BY YOUR OWN POCKET.

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