November 16, 2011 / 6:36 PM / 6 years ago

TIMELINE-Greece's debt crisis

Nov 16 (Reuters) - Here is a chronology of events since former Prime Minister George Papandreou first sealed a financial bailout deal for Greece in 2010.

May 2, 2010 - Papandreou says he 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.

The package represents the 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 10 - Global policymakers install emergency safety net worth about $1 trillion to bolster international financial markets and prevent Greek crisis from damaging the euro. This includes 440 billion euros in guarantees from euro zone states. EU finance ministers say the IMF will contribute 250 billion euros.

May 18 - Greece receives a 14.5 billion euro loan from the EU and can repay immediate debt.

July 7 - Parliament passes pension reform, a key requirement of the EU/IMF deal, and raises women’s retirement age from 60 to match men at 65.


May 11 - EU and IMF inspectors arrive in Athens to press Greece to shore up finances and to determine if country will get a 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 reduce its debts.

June 8 - Greece agrees to extra austerity measures and savings up to 2015 to cut deficits and to keep receiving 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, his 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, winning access to new funding.

July 8 - IMF approves disbursement of about 3.2 billion euros to help Greece pay debts due this month.

July 21 - Euro zone leaders agree on second rescue package with extra 109 billion euros of government money, plus contribution by private sector bondholders estimated to total as much as 50 billion euros by mid-2014.

Sept. 21 - Greece adopts more austerity measures, including cutting high pensions by 20 percent.

Sept. 27 - Greece passes an unpopular property tax.

Oct. 2 - Government draft budget figures say Greece will miss a deficit target set just months earlier. The 2012 draft budget is approved by cabinet and predicts a deficit of 8.5 percent of GDP for 2011, short of target.

Oct. 5 - Public sector workers strike for 24 hours.

Oct. 21 - Greece approves more austerity measures, defying violent protests in Athens and a general strike which shuts down much of the country. At least 74 people are wounded.

Oct. 27 - Euro zone leaders reach a deal with private banks and insurers for them to accept a 50 percent loss on their Greek government bonds under a plan to lower Greece’s debt burden.

Oct. 31 - Papandreou calls a referendum on the latest bailout without consulting European leaders.

Nov. 2 - He wins cabinet backing for the referendum on the 130-billion-euro bailout package.

French President Nicolas Sarkozy and German Chancellor Angela Merkel tell Papandreou Athens will not receive any more aid until it votes to meet its commitments to the euro zone.

Nov. 3 - Finance Minister Venizelos comes out against the referendum.

Nov. 4 - After intense pressure from European leaders, the government confirms it has dropped referendum plans.

Nov. 5 - Papandreou survives a parliamentary confidence vote in the early hours, avoiding snap elections which would have torpedoed Greece’s debt crisis bailout deal. He suggests a coalition to save Greece from bankruptcy.

Nov. 6 - Papandreou seals a deal with the opposition to form a coalition to approve the bailout before early elections. Under the agreement, Papandreou will stand down.

Nov. 9 - Greek political leaders agree on a new government, Papandreou steps down.

Nov. 10 - Former European Central Bank vice-president Lucas Papademos is to head Greece’s new crisis coalition. The new government is sworn in the next day.

Papademos says the coalition will implement the bailout deal with the euro zone before calling elections.

Nov. 14 - Conservatives vow to reject any new austerity measures in return for the aid keeping Athens from bankruptcy.

Nov. 16 - The Greek government won a vote of confidence.

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