The debt woes of Greece of have been ongoing since 2009, when a severe recession led the country into a debt crisis. In late May, Greece was able to once again secure debt relief from its European creditors by providing short and long term relief on debt coming due. The European Union members agreed on measures that will be phased in progressively with the continued support of the IMF. The IMF had announced in early May that it was considering halting its support for Greece, which was adamantly rejected by Greece and other countries. Greece will receive a 10.3 billion euro aid disbursement in order to avoid defaulting on debt it owes this summer.
Since the initial bailout of Greece in 2010, Germany has been the architect in reforming Greece’s expenses, instituting austerity measures that reduce pension payments, increase taxes, and reduce public service pay. All of these measures have been and continue to be extremely unpopular with Greek citizens, prompting public protests and labor disputes.
Sources: EuroStat, Bloomberg, IMF