That limited the power of socialist parties and unions In 2011 the European

That limited the power of socialist parties and

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That limited the power of socialist parties and unions. In 2011 , the European Financial Stability Facility added 190 billion euros to the bailout. that money also came from EU countries. By 2012 , Greece's debt-to-GDP ratio rose to 175 percent, almost three times the EU’s limit of 60 percent. Bondholders finally agreed to a haircut, exchanging 77 billion euros in bonds for debt worth 75 percent less. In 2014 , Greece’s economy appeared to be recovering, as it grew 0.7 percent. The government successfully sold bonds and balanced the budget. In January 2015 , voters elected the Syriza party to fight the hated austerity measures. On June 27, Greek Prime Minister Alexis Tsipras announced a referendum on the measures. He falsely promised that a "no" vote would give Greece more leverage to negotiate a 30 percent debt relief with the EU. On June 30, 2015, Greece missed its scheduled 1.55 billion euros payment. Both sides called it a delay, not an official default. Two days later, the IMF warned that Greece needed 60 billion euros in new aid. It told creditors to take further write-downs on the more than 300 billion euros Greece owed them. 5
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On July 5, Greek voters said "no" to austerity measures. The instability created a run on the banks. Greece sustained extensive economic damage during the two weeks surrounding the vote. Banks closed and restricted ATM withdrawals to 60 euros per day. It threatened the tourism industry at the height of the season, with 14 million tourists visiting the country. The European Central Bank agreed to recapitalize Greek banks with 10 billion euros to 25 billion euros, allowing them to reopen. Banks imposed a 420 euros weekly limit on withdrawals. That prevented depositors from draining their accounts and worsening the problem. On July 20, Greece made its payment to the ECB, thanks to a loan of 7 billion euros from the EU emergency fund. The United Kingdom demanded the other EU members guarantee its contribution to the bailout. In March 2016, the Bank of Greece predicted the economy would return to growth by the summer. It only shrank 0.2 percent in 2015, but the Greek banks were still losing money. They were reluctant to call in bad debt, believing that their borrowers would repay once the economy improved. That tied up funds they could have lent to new ventures. EU's European Stability Mechanism disbursed 7.5 billion euros to Greece . It planned to use the funds to pay interest on its debt. In May 2017 , Tsipras agreed to cut pensions and broaden the tax base. In return, the EU loaned Greece another 86 billion euros. Greece used it to make more debt payments. Tsipras hoped that his conciliatory tone would help him reduce the 293.2 billion euros in outstanding debt. On January 15, 2018, the Greek parliament agreed on new austerity measures to qualify for the next round of bailouts. On January 22, the eurozone finance ministers approved 6 billion to 7 billion euros. The new measures made it more difficult for unions strikes to paralyze the country. They helped banks reduce bad debt, opened up the energy and pharmacy markets, and recalculated child benefits.
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