June 5, 2011 / 7:09 PM / 8 years ago

Timeline: Greece's debt crisis

ATHENS (Reuters) - Here is a timeline of economic events in Greece since Prime Minister George Papandreou first sealed a bailout deal in May 2010:

May 2, 2010 - Prime Minister Papandreou says Greece has sealed deal with EU and IMF, opening door to a bailout in return for extra budget cuts of 30 billion euros ($43 billion) over three years.

— The aid package amounts to 110 billion euros over three years and represents the first rescue of a member of the then 16-nation euro zone.

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 latest austerity bill.

May 9 - The IMF unanimously approves its part of the rescue loans, with 5.5 billion euros being provided immediately.

May 10 - Global policymakers install an emergency safety net worth about $1 trillion to bolster financial markets and prevent the Greek crisis from damaging the euro.

— The package consists of 440 billion euros in guarantees from euro zone states, plus 60 billion euros in European debt instruments. EU finance ministers say the IMF will contribute a further 250 billion euros.

May 18 - Greece receives a 14.5 billion euro ($18.7 billion) loan from the EU and can now repay its immediate debt.

July 7 - Greek parliament passes pension reform, a key requirement of the EU/IMF deal, cutting benefits, curbing widespread early retirement and raising women’s retirement age from 60 to match men at 65.

August 5 - EU and IMF inspectors give Greece the green light for a fresh 9 billion euro tranche from the bailout.

September - The IMF says Greece is ahead of schedule in economic reform and it will disburse an additional 2.57 billion euros under a standby loan.

Oct 4 - Greece submits a 2011 draft budget to parliament pledging to cut the 2011 budget deficit faster than agreed in the IMF/EU bailout deal.

January 2011 - Fitch becomes the third rating agency to cut Greek debt to “junk” status after S&P and Moody’s.

February 11 - EU and IMF inspectors approve a fresh tranche of 15 billion euros of bailout funds, but warn its fiscal programme could fail unless it accelerates reforms and scales up privatisations.

April 8 - Eurogroup Chairman Jean-Claude Juncker warns Greece of the importance of controlling spending, a day after news that the country’s 2010 budget deficit overshot forecasts at over 10 percent of GDP.

April 15 - Greece presents new fiscal and privatisation plans to convince investors it can meet the terms of an EU/IMF bailout and avoid restructuring its debt.

May 2 - Finance Minister George Papaconstantinou again rules out a debt restructuring, adding that he has just “expressed the hope” that the EU and IMF will agree to extend bailout loan repayments.

May 9 - Standard and Poor’s cuts Greece’s credit rating further into junk territory to B, one notch above Pakistan’s.

May 11 - EU and IMF inspectors arrive in Athens to press Greece to shore up its finances and determine if the debt-choked country will get a fifth aid tranche of 12 billion euros.

— About 20,000 protesters march to parliament to mark a nationwide strike against wage cuts and tax hikes, a number smaller than previous protests.

May 21 - Greece must avoid debt restructuring and push on with budget cuts and privatisations to overcome its debt crisis, Papandreou and senior ECB officials say.

May 23 — Greece unveils a series of privatisations, part of a goal to raise 50 billion euros by 2015 to pay down its debt mountain.

May 29 - Thousands of protesters denounce Greece’s entire ruling class and vent their anger at the IMF and its demands for yet more belt-tightening.

June 1 - Greece criticises Moody’s decision to cut its credit rating to Caa1, bringing it seven notches into junk territory, to extremely speculative level, saying the move did not take into account the country’s efforts to tidy up the country’s finances.

June 3 - Greece is likely to get a vital slice of aid in July to avoid default, international lenders say, as they end a month-long review of their 110 billion euro bailout programme.

They say that Athens has made progress toward repairing its finances but must step up fiscal and economic reforms.

June 5 - A new aid package for Greece could cost more than 100 billion euros ($144 billion), German magazine Der Spiegel says in its latest issue to appear on Monday.

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