The 3-year-old bailout program of Greece is now over. This was initiated to help the country come out of the financial crisis. Since 2010, the conjugated loan given to Greece by the IMF or International Monetary Fund amounted to €260 billion. This is the biggest bailout ever taken place in the world’s economic history. Besides, the ESM or European Stability Mechanism offered the country with £55 billion or $70.8 billion or €61.9 billion over the period of 3 years. The fund is designed by various countries in order to utilize the euro currency to cope with the financial instability.
The huge financial assistance along with the tireless endeavor of the Greek government has resulted in the reformation of the broken economy apart from the recapitalization of the banks.
As a result of the bailout program, Greece is now capable of borrowing money on the financial markets. On the other hand, due to the imposed regulations, the Greek government was compelled to initiate a few austerity measures which are highly unpopular.
With baby steps, the Greek government has recovered from the crisis. However, it is still running 25% lower than it previously was.
The ESM offered further $27 million to Greece to stabilize the situation. According to Mario Centeno, the ESM Chairman, Greece is now capable to stand stable without any assistance. He also excitedly stated that the support offered by the Greek people was unmatched. Also, he confirmed that the rescue follow-up schemes will now be deactivated, which were in action since 2010. In fact, in the past 8 years, Greece will be taking a financially independent step for the first time.
The Director of the Hellenic Observatory, Prof. Kevin Featherstone, from the London School of Economics, stated that Greece has assisted in protecting the future of the eurozone, by accepting the conditions surrounding the bailout terms. On the other hand, the loan needs repayment with the due course of time.