Greece Sovereign

About Greece Sovereign

Greece defaulted on its sovereign debt in March 2012, the largest sovereign default in history by face value. The restructuring wrote off approximately 107 billion in debt. Private bondholders took a 53.5 percent haircut. Greece had accumulated massive debts after joining the euro, with budget deficits exceeding EU limits. The 2008 financial crisis exposed the unsustainable fiscal position. The EU, ECB, and IMF provided bailout packages totaling 289 billion across three programs from 2010 to 2015. Greece implemented severe austerity measures, cutting public spending by 25 percent of GDP. Unemployment reached 27 percent. GDP fell by 25 percent. The crisis nearly caused Greece to leave the eurozone, dubbed Grexit. The Greek depression was the worst economic crisis in a developed country since the 1930s.