TIMELINE-Greece's debt crisis

Wed Oct 5, 2011 11:09am EDT

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 Oct 5 (Reuters) - Greek state workers walked off the job on
Wednesday to protest against austerity, defying a plea by the
government to rally behind its effort to fend off national
bankruptcy. 	
 Greece's worsening debt crisis poses a risk to the euro
currency and the international financial system. Reforms to
Greek finances took on a new urgency this week after the
government announced it would miss its 2011 deficit target.  	
 Here is a timeline of economic events since Prime Minister 
George Papandreou first sealed a bailout deal in May 2010:  	
 May 2, 2010 - Papandreou says has sealed a deal with the EU
and IMF, opening the door for a bailout in return for extra
budget cuts of 30 billion euros ($43 billion) over three years. 	
 -- Three-year package amounts to 110 billion euros and 
represents first rescue of a euro zone member.  	
 May 4/5 - Public sector workers stage 48-hour nationwide 
strike. Three people are killed when a bank is set on fire.  	
 May 6 - Greek parliament approves austerity bill.  	
 May 9 - IMF unanimously approves its part of rescue loans, 
with 5.5 billion euros being provided immediately.  	
 May 10 - Global policymakers install emergency safety net 
worth about $1 trillion to bolster international financial 
markets and prevent Greek crisis from damaging the euro.  	
 -- The net consists of 440 billion euros in guarantees from
euro zone states, plus 60 billion euros in European debt
instruments. EU finance ministers say IMF will contribute a
further 250 billion euros.  	
 May 18 - Greece receives 14.5 billion euro ($18.7 billion) 
loan from EU and can repay immediate debt.  	
 July 7 - Greek parliament passes pension reform, key 
requirement of the EU/IMF deal, which includes raising women's 
retirement age from 60 to match men at 65.  	
 Aug. 5 - EU and IMF inspectors give Greece green light for 
fresh 9 billion euro tranche from bailout.  	
 September - IMF says Greece is ahead of schedule in economic
reform.	
 January 2011 - Fitch becomes third ratings agency to cut
Greek debt to "junk" status after S&P and Moody's.  	
 Feb. 11 - EU and IMF inspectors approve a fresh tranche of 
15 billion euros of bailout funds.  	
 May 11 - EU and IMF inspectors arrive in Athens to press 
Greece to shore up finances and to determine if country will get
fifth aid tranche of 12 billion euros.  	
 May 23 - Greece unveils series of privatisations, part of 
its goal to raise 50 billion euros by 2015 to pay down debt.  	
 June 1 - Moody's slashes Greece's credit rating by three 
notches to move it deeper into junk territory.  	
 June 8 - Greece agrees to 6.48 billion euros of extra 
austerity measures for 2011 and savings up to 2015 to cut 
deficits and to keep getting aid.  	
 June 13 - Greece gets the lowest credit rating in the world
after S&P downgrades it by three notches, to CCC from B.   	
 June 17 - Papandreou reshuffles cabinet, appoints Evangelos
Venizelos, Papandreou's main party rival, as new finance
minister. The new cabinet wins confidence vote on June 22.	
 June 29 - Papandreou wins parliamentary majority in favour 
of five-year austerity plan by 155 votes to 138, clearing major 
hurdle to winning access to new international funding.	
 -- Euro zone finance ministers approve release of next 
tranche of emergency loans on July 2, saying 12 billion euros
would be paid by July 15.	
 -- Police clash with protesters outside parliament. 
About 100 people are injured. 	
 July 8 - IMF approves disbursement of about 3.2 billion 
euros to help Greece pay debts due this month. This tranche 
brings IMF disbursements to about 17.4 billion euros.	
 July 21 - Euro zone leaders agree on second rescue package 
with extra 109 billion euros ($157 billion) of government money,
plus contribution by private sector bondholders estimated to
total as much as 50 billion euros by mid-2014. 	
 Sept. 14 - Germany's Angela Merkel and France's Nicolas
Sarkozy tell Papandreou he must implement reforms and meet
fiscal goals set under July bailout plan.	
 Sept. 21 - Greece adopts more austerity measures, including 
cutting high pensions by 20 percent.	
 -- IMF says crisis has increased European banks' exposure by
300 billion euros.	
 Sept. 27 - Greece passes an unpopular property tax to 
persuade IMF and EU it deserves the next 8-billion-euro tranche
it needs to pay October salaries and avoid bankruptcy.	
 -- Using teargas, police disperse 1,000 protesters in
Syntagma square, the epicentre of anti-austerity protests.	
 Sept. 29 - The "troika" team of inspectors begin talks on a
plan demanded by lenders to deepen budget cuts and raise taxes.	
 Oct. 2 - Greece will miss a deficit target set just months
ago in a massive bailout package, according to government draft
budget figures. The 2012 draft budget is approved by cabinet and
predicts a deficit of 8.5 percent of GDP for 2011, well short of
the 7.6 percent target.	
 -- The cabinet approves a measure creating a "labour
reserve" allowing 30,000 state workers to be placed on 60
percent pay and be dismissed after a year.	
 Oct. 3 - Euro zone ministers postpone a vital aid payment to
Greece until mid-November. Venizelos says the country has enough
cash to cope until then.	
 Oct. 5 - Public sector workers and state utilities employees
go on strike for 24-hours against anti-austerity measures in
action called by main labour unions ADEDY and GSEE.	
 	
 (Reporting by David Cutler, London Editorial Reference Unit and
Renee Maltezou, Athens bureau) 
  	
 	
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