In May 2010, the Greece government requested a financial bailout from the IMF and EU. The government signed a memorandum of economic and financial policies for a three-year program with the so-called "troika: made up of the IMF, the European Commission and European Central Bank. The IMF approved a loan for Greece in the amount of 26. Million dollars over next three years, presently Greece has received 17.5 million from the IMF.1 Per IMF's website in a transcript of a press briefing on Greece consisting of members of the IMF, European Central Bank (ECB), and European Commission (EC) in Greece provided several suggestions on how Greece can achieve stability in the country. The parties suggested severe reform in government and private sector is in dire need to reduce corruption. The structural reform will concentrate on areas in the healthcare, public enterprises, tax administration, privatization of state assets, and public enterprises.2 .
The EU-IMF program had the dual of undertaking a large fiscal adjustment to address fiscal insolvency and, simultaneously, achieving "internal devaluation" to close the competitiveness gap. However, it soon became apparent that the program implementation was lagging behind schedule. To date, more than 20% of deposits have been lost since the beginning of the crisis in early 2010. Bank's access to international capital markets has also been shut off. At this present time, they rely fully on the ECB's funding via regular open market operations and the Greek central bank's emergency liquidity assistance. Briefly, I will approach the factors involving the debt situation in Greece. Before drawing a conclusion I will give a brief summary of the consequences and their effects. .
The Bailout Program.
In the 2011, European Summit agreed on a new program to assist Greece in this crisis, the agreement between the IMF, and private sectors to provide financial assistance to Greece for €190 billion ($230 billion).