The European Financial Stability Facility (EFSF) will be dispersing the next amount and the ECB and the IMF will monitor Greece very closely.3 In May 2010, they signed a three-year program, which would provide EUR80bn from Eurozone countries and EUR30bn from the IMF. So, that Greece was able to pay the urgent debts back and to avoid a declaration of bankruptcy. But it was just an emergency assistance and it was obvious that Greece would need more money. That's is why in 2010 the European member states also founded a temporary institution called the European Financial Stability Facility (EFSF). The second bailout loan confirmed Greece 16.4 Bn. € till 2014. But, Greece don't get this bailouts for free. These are loans with additional requirements for Greece. Since, 2010 until today there were 6 austerity measures. They are meant to close the nation's budget, lower its huge debt burden and make its economy more competitive. There is an endless list of savings and political reforms. For example of the first four austerity packages and the VAT was set from 19% to 21%. .
The euro-zone national banks, the ECB, the IMF, and European governments holds more than 50% of Greece's bonds.4 Because public institutions are holding more than 50% of Greece's sovereign debt and the country's debt is increasing daily, it is possible Greece will become insolvent and will be unable to pay off its debt; this could mean that taxpayers would end up footing the bill. Greece is so in debt that the country is unable to redeem the bonds because Greece can only redeem the bonds when the country receives its bailout dispersement but it is not enough to put a dent into the country' debt. .
Greece's Debt.
Greece's debt problems consist of a variety of mistakes and issues including profligate spending, corruption, overpaid positions, tax evasion, and large pensions, etc. One rule when joining the European Union (EU) is an understanding each country is to keep the country's budget deficit within 3% of GDP.
