Greece Crisis

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Greece Crisis

  1. 2. Financial crisis of Greece
  2. 3. <ul><li>President:   Karolos Papoulias (2005) </li></ul><ul><li>Prime Minister:   George Papandreou (2009) </li></ul><ul><li>Population (2009 est.):  10,737,428 (growth rate: 0.1%); birth rate: 9.4/1000 ; </li></ul><ul><li>Monetary unit:  Euro </li></ul>
  3. 4. <ul><li>Greece, a developed country with a high standard of living and very high Human Development Index; </li></ul><ul><li>A top five tourist destination since at least the 80s </li></ul><ul><li>Greece had shifted to the Euro in 2001. </li></ul>
  4. 5. <ul><li>Economic summary:  </li></ul><ul><li>GDP (2009est.): $341 billion </li></ul><ul><li>per capita $32,100   </li></ul><ul><li>Real growth rate:  4%.   </li></ul><ul><li>Inflation (2009 est.) :   1.2% </li></ul><ul><li>Unemployment (2009 est.) : 9 % </li></ul><ul><li>Exports:  $25.76 billion </li></ul><ul><li>Imports:   $79.92 billion </li></ul>
  5. 6. <ul><li>Greece crisis </li></ul>
  6. 7. <ul><li>Debt Crisis of Greece </li></ul><ul><li>Greek government funding crisis </li></ul>
  7. 8. <ul><li>Greece has a 12.7% deficit of its GDP. </li></ul><ul><li>National debt has exceeded 300 billion Euros. </li></ul><ul><li>Greece has US$ 25 billion dollar of its debt that must be immediately re-financed </li></ul><ul><li>Debt crisis </li></ul>
  8. 9. <ul><li>The Greek government requested that the EU/IMF bailout package (made of relatively high-interest loans) be activated. </li></ul><ul><li>The Euro zone legally requires that national deficit be within a 3% limit if GDP. </li></ul><ul><li>With Greece’s deficit of 12.7% of the GDP, the European Central Bank is legally not allowed to engineer a typical bail-out, partly due to political aspects of the EU treaty. </li></ul>
  9. 10. <ul><li>The size of the bailout is expected to be €45 billion ($61 billion) and it is expected to take three weeks to negotiate </li></ul><ul><li>With a payout within weeks of €8.5 billion of Greek bonds becoming due for repayment . </li></ul>
  10. 11. <ul><li>Fitch ratings has called Greece as “Eurozone’s weakest member” </li></ul><ul><li>Greece’s debt is 113%of its GDP. </li></ul>
  11. 12. <ul><li>Greek Government Funding Crisis : </li></ul><ul><li>The Greek economy was one of the fastest growing in the euro zone during the 2000s </li></ul><ul><li>From 2000 to 2007 it grew at an annual rate of 4.2% </li></ul><ul><li>Estimated tax evasion costs the Greek government over $20 billion per year. </li></ul><ul><li>Investors placed about €20bn ($28bn, £17bn) in orders for the five-year, fixed-rate bond </li></ul>
  12. 13. <ul><li>Greek crisis hurts EU reputation </li></ul><ul><li>A default by one member of the 27 participants in the Euro-zone will lead to the collapse of the Euro </li></ul><ul><li>Countries of the European Union are allocating 20 to 25 billion Euros to Greece as a rescue package to help it get over the financial crisis </li></ul><ul><li>Expectations of a weaker Euro, dollar becomes stronger relative the Euro </li></ul>
  13. 14. <ul><li>Greece must change or sink ! </li></ul>
  14. 15. <ul><li>Real estate industry </li></ul><ul><li>Greek political parties </li></ul><ul><li>Systemic corruption and “clientelism </li></ul><ul><li>Tax inspectorate </li></ul><ul><li>Health sector </li></ul>
  15. 16. Thank You

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