Greece-crisis is an article explains about the major crisis which hit the Greece during July- 2015 which is still surviving.The reasons why still Greece crisis is surviving.

1. GREECE IN DOLDRUMS
A developed country which has high living standard and Human Development Index and the
country‘s economy which- ranks at the 45th
position in the world with a nominal gross domestic
product of $238 billion per annum. It has also one of the 51st largest purchasing power parity at
$286 billion per annum. As of 2013, Greece is the 13th
largest country in the 28-member
European Union. All this seemed as a dream of bubble that bursted into the harshness of reality
within days. Innumerable struggling hands of making it a reputed country suddenly vanquished
with the venom of debt-crisis and made the country paralytic.
Greece became the epicenter of Europe’s debt crisis after Wall Street imploded in 2008. With
global financial markets still reeling, Greece announced in October 2009 that it had been
understating its deficit figures for years, raising alarms about the soundness of Greek finances.
Suddenly, Greece was shut out from borrowing in the financial markets. By the spring of 2010, it
was veering toward bankruptcy, which threatened to set off a new financial crisis.
To avert calamity, the so-called troika — the International Monetary Fund, the European Central
Bank and the European Commission — issued the first of two international bailouts for Greece,
which would eventually total more than 240 billion euros, or about $264 billion at today’s
exchange rates.
The bailouts came with conditions. Lenders imposed harsh austerity terms, requiring deep budget
cuts and steep tax increases. They also required Greece to overhaul its economy by streamlining
the government, ending tax evasion and making Greece an easier place to do business.
CURRENT STATUS
Greece and its European creditors announced an agreement in Brussels on July 13 that aims to
resolve the country’s debt crisis and keep it in the eurozone, but that will require further
budgetary belt-tightening. Greece needs to agree on the details of the new aid program before
Aug. 20, when the country is scheduled to make a payment of 3.2 billion euros on bonds held by
the European Central Bank.
The International Monetary Fund has threatened to withdraw support for Greece’s bailout unless
European leaders agree to substantial debt relief.
REASONS FOR PREVAILING CRISIS
The money was supposed to buy Greece time to stabilize its finances and quell market fears that
the euro union itself could break up. While it has helped, Greece’s economic problems haven’t
gone away. The economy has shrunk by a quarter in five years, and unemployment is above 25
percent.
The bailout money mainly goes toward paying off Greece’s international loans, rather than
making its way into the economy. And the government still has a staggering debt load that it
cannot begin to pay down unless a recovery takes hold.
Many economists, and many Greeks, blame the austerity measures for much of the country’s
continuing problems. The leftist Syriza party rode to power this year promising to renegotiate the
bailout; Mr. Tsipras said that austerity had created a “humanitarian crisis” in Greece.
But the country’s exasperated creditors, especially Germany, blame Athens for failing to conduct
the economic overhauls required under its bailout agreement. They don’t want to change the rules
for Greece.
Greece’s Creditors

2. Almost two-thirds of Greece’s debt, about 200 billion euros, is owed to the eurozone bailout
fund or other eurozone countries. Greece does not have to make any payments on that debt
until 2023. The International Monetary Fund has proposed extending the grace period until
mid-century.
So while Greece’s total debt is big—as much as double the country’s annual economic
output—it might not matter much if the government did not need to make payments for
decades to come. By the time the money came due, the Greek economy could have grown
enough that the sum no longer seemed daunting.
In the short term, though, Greece has a problem making payments due on loans from the
International Monetary Fund and on bonds held by the European Central Bank. Those
obligations amount to more than 24 billion euros through the middle of 2018, and it is
unlikely that either institution would agree to long delays in repayment.
EFFECTS ON FINANCIAL GLOBAL SYSTEM
In the European Union, most real decision-making power, particularly on matters involving
politically delicate things like money and migrants, rests with 28 national governments, each
one beholden to its voters and taxpayers. This tension has grown only more acute since the
January 1999 introduction of the euro, which now binds 19 nations into a single currency
zone watched over by the European Central Bank but leaves budget and tax policy in the
hands of each country, an arrangement that some economists believe was doomed from the
start.
Since Greece’s debt crisis began in 2010, most international banks and foreign investors have
sold their Greek bonds and other holdings, so they are no longer vulnerable to what happens

3. in Greece. (Some private investors who subsequently plowed back into Greek bonds, betting
on a comeback, regret that decision.)
And in the meantime, the other crisis countries in the eurozone, like Portugal, Ireland and
Spain, have taken steps to overhaul their economies and are much less vulnerable to market
contagion than they were a few years ago.
Debt in the European Union
Gross government debt as a percentage of gross domestic product plotted through the fourth
quarter of 2014.
Source: Eurostat
INDIRECT IMPACT ON INDIA
Fall in crude oil prices & dollar strength:
Nilesh Shah of Kotak AMC is of the view that one indirect benefit of Greece vote is fall in
crude oil prices, and second, as the dollar has strengthened, the possibility of US delaying its
interest rate hike is increasing. Both these things are beneficial to India.
Value buying:
Most analysts are of the view that the current fall is more of a knee-jerk reaction, but Indian
markets should be able to bounce back, and investors should use dips to accumulate
quality stocks.
Yogesh Mehta, VP, Group Leader - PCG Advisory - Equities, Motilal Oswal Securities Ltd
said , “We have a 10,000 target for the Nifty by the end of this calendar year ending
December, and our target for December 2016 is 11,000, which translates into and upside of
30 per cent from here. The rally will be driven by domestic growth and earnings.

4. CONCLUSION
Greece had been the birthplace of European culture’s revenue. It has been regarded as one of the
richest country in the world. Contrary to it, the situation is bit of the pot is calling the kettle black. To
put it bluntly, rather than using Greece as a scapegoat for failings that also are to be shared more
widely in Europe, euro-bureau-technocrats in Brussels could have saved billions if at the beginning of
the crisis they had formulated a development plan that actively helped turn Greece into our continent's
Palm Springs or Florida, as it were. A dozen or two of such pilot projects directly capitalizing on the
country's beautiful climate, diverse mineral resources, and decisively strategic position would have
sufficed. But every tunnel has light at its end, It is not too late, and that is so because Greece is a rich
country. State-owned real estate alone is worth well in excess of €500 billion and dwarfs the country's
current sovereign debt standing at some €390 billion. These assets could quickly be legitimately
exploited via standard 35-year leasing agreements, as in the case of Eleftherios Venizelos
International Airport in Athens, one of the busiest in the world.
In addition, world shipping today is at a crossroads given the looming abandonment of conventional
heavy fuels in favor of more environment friendly liquid natural gas. Current demand for
revolutionary clean propulsion engines already stands at an impressive €4 billion. Consistent with a
brilliant heritage in shipping, Greek shipyards in Syros and elsewhere in the country remain fully
competitive. Thanks to a traditionally highly skilled labor force their current capacity to remove
conventional machinery and install new generation LNG engines, coming from leading makers such
as MANN and B&W, is bound to broaden already profitable horizons and create thousands of new
jobs.
Source: New York Times report
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