As the Eurozone bailed out Greece in their financial problems, investors thought Greece was a good place to invest. This meant lower interest rates for Greece to barrow money, as they paid off debt they could barrow more. With the lower interest rates and increase in barrowing, Greece started spending more. However, Greece was not making money to pay back their loans. Greece has had so many bailouts from the International Monetary Fund and the Eurozone that they are now forced to cut back on their spending and increase their tax revenues. (Johnston)
As of August 2014 their unemployment had reached 25.4%. With Greece’s unemployment to high this is the next closest crisis compared to the great depression. Since so many people are out of work there is not a great increase on tax revenues and the homeless number has gone up. This is not good for Greece’s economy and they will face many challenged from here on …show more content…
This is when the international Monetary Fund and Eurozone membership began with the “bailouts” for Greece adding up to the amount of more then 240 billion euros (approx. 264 billion dollars). The conditions of these bailouts were the cuts for Greece including huge budget cuts and large tax increases. (The New York Times) The money barrowed that was supposed to be a bailout was mostly to pay off international loans. Currently Greece is under very strict rules and their relationship with Europe can be easily broken.
In the Article nine things to know about Greece’s economic crisis by Katrina Lamansky, it talks about in July of 2015 after Greece failed to make a payment to the International Monetary Fund Greece’s banks had shut down for three weeks. The people of Greece were not allowed to access their money in their bank accounts. Even when the banks had opened there was still a hold on the money they could withdrawal. Many of the Greeks wanted to exit the Eurozone and return to their old currency. As stated in a previous article, Greece continues to have an unemployment rate of