Key dates in the Greek debt crisis

GMT 20:47 2015 Sunday ,14 June

Arab Today, arab today Key dates in the Greek debt crisis

Cash-strapped Greece's EU-IMF creditors
Athens - AFP

Here is a recap of Greece's five-year debt crisis as crunch talks with its international creditors ended with no deal Sunday, further raising fears of a default that could pave the way for a "Grexit".

Cash-strapped Greece's EU-IMF creditors are pushing for tough reforms from in return for unlocking the desperately needed 7.2 billion euros ($8.1 billion) still remaining in Greece's international bailout, which expires on June 30.

-- 2009 --

- October: The Greek government of George Papandreou triggers the crisis by revealing that the national public deficit for 2009 amounts to 12.7 percent of the country's output, instead of 6.0 percent as believed up til then. The figure is later raised to 15 percent of gross domestic product (GDP).

- December: The three main credit ratings agencies -- Fitch, Standard & Poor's and Moody's -- downgrade Greece's debt.

-- 2010 --

- April 23: With a public debt of 350 billion euros ($435 billion), Greece appeals for aid from the EU and the IMF because Athens can no longer borrow on the markets.

This leads to the spectre of a Greek default on part of its debt falling due in May and failure to meet its bills due for the rest of the year, with the prospect its woes could be replicated in other eurozone nations.

- May 3: Greece becomes the first eurozone country to receive a bailout as the EU and IMF announce a 110-billion-euro package in exchange for painful austerity measures, including harsh wage cuts and tax hikes.

-- 2011 --

- October 27: After Greece's economic situation deteriorates further, the eurozone proposes a second bailout package of 130 billion euros under which private sector creditors also agree to write off about half the debt owed to them. The plan is approved in March 2012 and covers 107 billion euros of the 206 billion owed.

-- 2012 --

- March 9: Private creditors tender bonds amounting to 83.5 percent of what Greece owes them as part of the debt-swap deal agreed in October, avoiding a default.

- June: Despite growing strength of the leftist anti-austerity party Syriza, a coalition government is formed on June 20, and approves an austerity budget for 2013.

-- 2014--

- April: Greece returns to sovereign debt markets for the first time in four years, and posts a primary surplus (which excludes debt interest payments) at the end of the year.

-- 2015 --

- January 25:  The anti-austerity Syriza party, led by Alexis Tsipras, wins a snap Greek election with a pledge to renegotiate the bailout terms. In five years, national output has been cut by 25 percent, salaries have fallen by more than that, and a quarter of the workforce is unemployed.

- February 12: The government fails to reach a deal with eurozone ministers on renegotiating the bailout. A second attempt four days later also fails.
- February 20: Greek authorities and its creditor institutions agree to extend aid until the end of June. Athens pledges to come up with reform measures in exchange for the last 7.2 billion euros in rescue funds.

- June 2: After months of bickering, the institutions make a final pitch to Greece regarding the reforms deemed necessary in return for unlocking the funds.

- June 5: Prime Minister Tsipras rejects creditor demands for pension cuts and labour market reforms.

- June 8: German Chancellor Angela Merkel warns that "we don't have much more time" to resolve the crisis.

- June 10: EU leaders reject a counter-proposal from Greece and EU president Donald Tusk tells Athens the next day that "there is no more time for gambling."

- June 14: Eleventh-hour talks between Athens and its creditors break up without a deal, bringing the threat of a "Grexit" closer than ever although European Commission chief Jean-Claude Juncker says he remains convinced "a solution can still be found before the end of the month".

To meet the June 30 deadline, a reform deal would have to be reached by the June 18 meeting of the eurozone's 19 finance ministers, who control the bailout purse-strings.


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