Oct 5 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
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
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)