Greece has officially come out of the crisis but it still faces three big challenges

Business insider
Pavel Ramírez, Business Insider España Aug. 23, 2018, 6:14 AM

Eight years and three bailouts later, Greece is seeing light at the end of what has been a very long tunnel: the European Stability Mechanism (ESM) announced last week that Greece had "successfully" emerged from the three-year financial assistance programme agreed between Athens and its international creditors in 2015.

Over three years, the country had to fork out €61.9 billion to finance economic recovery and bank recapitalisation. The ESM reported that the remaining €24.1 billion available under the programme's maximum threshold of €86 billion wasn't needed.

While things are looking up for Greece, its economic data still looks far from ideal and there are major challenges still facing Athens.

Bailout Over, Greece Returning to Stormy Markets

Wall Street Journal
Tsipras is promising some relief from austerity measures while sticking to budget disciplineBy Nektaria Stamouli
Updated Sept. 9, 2018 5:11 p.m. ET
THESSALONIKI, Greece—Greek Prime Minister Alexis Tsipras unveiled his post-bailout economic policy over the weekend, promising some relief from austerity measures while sticking to budget discipline.

His difficulty is that Greece has weaned itself from bailout loans just as bond markets are becoming more volatile again after years of calm.

Greece doesn’t need to borrow from bond markets immediately, thanks to a large cash buffer built up at the end of its eurozone-led bailout. But the country needs to rebuild investor confidence in its bonds if it is to stand on its own feet financially in coming years and avoid turning to emergency loans from Germany and other eurozone governments.

Don't blame others for your problems, Germany's Schaeuble tells Greece

OCTOBER 25, 2017 / 12:03 AM / UPDATED 14 HOURS AGO

Reuters Staff

3 MIN READ


REUTERS

ATHENS (Reuters) - Outgoing German Finance Minister Wolfgang Schaeuble urged debt-wracked Greece to stop blaming others for its financial woes and stick to a reform agenda instead of relying on debt relief.

Schaeuble, a leading advocate of Greece’s tough austerity programs and one of Germany’s most powerful politicians, was elected speaker of its lower house of parliament on Tuesday.

The 75-year-old lawyer, whose no-nonsense approach on austerity made him a popular hate figure among Greeks, told Greek Skai TV that Athens must take responsibility for its fiscal difficulties and act on them.

Breakingviews - Dixon: No escape from debtors’ prison for Greece

SEPTEMBER 11, 2017 / 4:51 PM
Hugo Dixon
6 MIN READ

Reuters

Tinos, GREECE (Reuters Breakingviews) - Alexis Tsipras is desperate to avoid “suffocating supervision” of Greece’s actions when the country’s third bailout programme ends next August. At the weekend, he promised as much. But the best the Greek prime minister can hope for is that Athens will move from its current high-security prison to an open one – and that will happen only if he behaves.

Greek PM urges IMF to decide on bailout participation by end of year

George Georgiopoulos, Angeliki Koutantou
Reuters

ATHENS (Reuters) - The International Monetary Fund should decide whether it will fund Greece’s current bailout program by the end of the year and help Greece conclude a key bailout review on time, Prime Minister Alexis Tsipras said on Sunday.

Euro zone governments in June approved another 11th-hour credit line for Greece, worth nearly $10 billion, after the IMF said it would join the country’s current bailout, the third since 2010, in principle.

Greece to Beat Budget Target, Plans More Bonds-Finance Ministry Official

By REUTERS
SEPT. 13, 2017, 7:48 A.M. E.D.T.

ATHENS — Greece expects a larger-than-targeted primary budget surplus this year and plans to tap bond markets again within seven months, a senior finance ministry official said on Wednesday.

Athens is keen to quickly conclude a third bailout review with its international creditors, helping smooth its return to market financing, as its rescue programme ends next August.

Greece returned to bond markets for the first time in three years in July. It sold 3 billion euros of new five-year bonds alongside a tender to buy back outstanding 5-year paper issued in 2014.

Greek Bond Sale Is Said to Be Delayed by IMF Debt Cap Rule

By Viktoria Dendrinou  and Nikos Chrysoloras
19 Ιουλίου 2017, 12:43 π.μ. EEST 19 Ιουλίου 2017, 11:48 π.μ. EEST

Bloomberg

Greece’s much anticipated return to bond markets this week has been held off partly due to a ceiling set by the International Monetary Fund on the amount of debt the country can hold, according to three officials familiar with the matter who asked not to be identified as the talks are confidential.

EU Commission Says Greece Public Finances Back in Order

By REUTERS
JULY 12, 2017, 7:57 A.M. E.D.T.
The New York Times

BRUSSELS — Greece's fiscal position has improved and the European Union should end disciplinary procedures against it over its excessive deficit, the EU commission said on Wednesday, paving the way for the country to return to international bond markets.

EU fiscal rules oblige member states to keep their budget deficits below 3 percent of their economic output or face sanctions that could entail hefty fines, although so far no country has received a financial penalty.

UPDATE 1-Greece targeting sub-5 percent yields for market return

Wed Jun 7, 2017 | 2:17pm EDT

Reuters

* Greece wants yields below 5 pct before debt market return

* ECB support would boost chances considerably

* Decisions will depend on outcome of Eurogroup meeting (Adds detail, background, quotes)

By Lefteris Papadimas and Marc Jones

Greece Calls on Europe to Offer Growth Incentives, Help Break Debt Impasse

By REUTERS
JUNE 7, 2017, 10:39 A.M. E.D.T.



The New York Times

ATHENS — Greece urged its European lenders on Wednesday to offer incentives that will boost growth and help break an impasse between the euro zone and the International Monetary Fund on the size of relief the country needs to make its debt sustainable.

During a meeting of euro zone finance ministers last month, Greece, its euro zone lenders and the IMF failed to agree on the debt relief measures to be implemented after its current bailout expires in 2018, mainly because of different growth assumptions. They are now aiming for a deal at a June 15 Eurogroup meeting.

Greece denies report it may opt out of receiving more bailout money

Tue May 30, 2017 | 10:34am EDT

Reuters

By Renee Maltezou | ATHENS
Greece on Tuesday denied a German newspaper report it could refuse receipt of bailout loans needed to make a July debt repayment if its lenders fail to offer clear debt relief terms, despite it having passed more reforms.

Greek Creditors Seek to Break Impasse on Stalled Bailout Review

by Viktoria Dendrinou
21 May 2017, 4:11 μ.μ. EEST
Euro-area finance ministers gather in Brussels on Monday to try to clinch a deal on easing Greece’s debt burden, which would resolve a stalled review of the country’s bailout and pave the way for a new set of rescue loans.

While Greece and its bailout supervisors have agreed on economic overhauls, the completion of the country’s review has been held back by disagreements between key creditors over how much debt relief is needed.

Greece cuts 2017 growth forecast

Sat May 13, 2017 | 5:24pm EDT

Reuters

Greece cut its 2017 growth forecast to 1.8 percent from 2.7 percent, according to a mid-term budget plan unveiled late on Saturday, driven by uncertainty caused by delays in concluding the latest review of bailout reforms.

Greece and its foreign creditors reached a deal on reforms in early May after six months of tense negotiations but the wrangling hurt economic activity. The Greek central bank governor had warned the delays could hobble economic recovery.

PM Tsipras says Greece has done its bit, now wants debt relief

Thu May 4, 2017 | 4:46pm EDT

Reuters

By Renee Maltezou | ATHENS
Prime Minister Alexis Tsipras called on Greece's international lenders on Thursday to reach an agreement on easing its debt burden by May 22, when euro zone finance ministers meet in Brussels to discuss the bailout progress.

Athens and its creditors reached a long-awaited deal this week on a series of bailout reforms Greece needs to unlock loans from its 86-billion euro rescue package, the country's third since in 2010.

Pledging more austerity, Greece cuts deal with lenders

Tue May 2, 2017 | 3:47am EDT

Reuters

By Renee Maltezou | ATHENS
Promising to cut pensions and give taxpayers fewer breaks, Greece has paved the way for the disbursement of further rescue funds from international lenders and possibly opened the door to reworking its massive debt.

Officials from both sides reached a deal early on Tuesday on a package of bailout-mandated reforms, ending six months of staff-level haggling. Greek Finance Minister Euclid Tsakalotos announced it with a term associated with papal elections.

Greece Hits a Bailout Target. The IMF Is Not Convinced

by Sotiris Nikas
20 Απριλίου 2017, 10:19 π.μ. EEST

Bloomberg

Greece achieved a 2016 primary surplus almost seven times higher than its bailout target, but the International Monetary Fund is skeptical the country can sustain that performance.

The Hellenic Statistical Authority is set on Friday to unveil data on last year’s primary surplus, which Eurostat is expected to validate on Monday. The surplus will be close to 4 percent of gross domestic product, according to a finance ministry official who asked not to be identified in line with policy. The bailout target was for a primary surplus of 0.5 percent of GDP.

EU should consider billion-euro investment boost for Greece - Austrian finmin

 Mon Apr 10, 2017 | 3:46am EDT

Reuters

The European Union should consider a one-billion-euro ($1.1-billion) special investment programme to spur growth in debt-ridden Greece, Austria's finance minister told daily Der Standard in an interview published on Monday.

Hans Joerg Schelling said Greece would only be able to get back on track and regain access to capital markets if it was able to generate sustainable growth in the mid- and long-term. It was important to help the country participate in a pick-up in growth in the euro zone, he added.

Greek PM says debt relief is a condition for more austerity

Sun Apr 9, 2017 | 6:53am EDT

Reuters

By Renee Maltezou and George Georgiopoulos | ATHENS
Greece will implement additional austerity measures agreed with its official creditors on condition of further debt relief that will enable the country to be included in the ECB's bond buying scheme, Prime Minister Alexis Tsipras said on Sunday.

Athens struck a deal with its international creditors at Friday's meeting of euro zone finance ministers in Malta on key elements of a reform package that could unlock bailout funds for the country to help it repay maturing debt in July.

"Medium-term debt relief measures, able to include us in (the ECB's) quantitative easing, and a fiscal path that will not be unattainable, is the condition for us to implement the measures we decided," Tsipras told his leftist Syriza party's central committee.

EU, Greece seek bailout deal by Friday

 Wed Apr 5, 2017 | 8:57am EDT

Reuters

By Renee Maltezou and Jan Strupczewski | ATHENS/BRUSSELS
Greece and its international lenders remained at odds in talks to release fresh bailout loans to Athens on Wednesday as Prime Minister Alexis Tsipras said a deal was needed this week and accused creditors of 'playing games' and causing delays.

Talks between Greece, the European Union and International Monetary Fund have stuttered for months due to differences over Greece's fiscal progress, labor and energy market reforms, rekindling worries of a new crisis in Europe.

'Grexit' is back

Business Insider UK
Jim Edwards, Business Insider UK
Mar. 23, 2017, 12:16 PM

Greece's banks lost about €4 billion in bank deposits since the turn of the year as Greeks fear a return of capital controls that ban them from making cash withdrawals over set limits. Separately, the country looks as if it is tipping back into recession — GDP shrank by 1.2% in Q4 2016.

Does this story sound familiar?

It should. A collapsing economy followed by a run on the banks were the signal events of the Greek debt crisis that began in 2009 and never really ended.

So now people are asking — again — whether Greece might be forced out of the eurozone: