The first Bail-out Loan made to Greece was on May 2 2010 for 110 Billion Euros. It was to avoid a "Grexit" and also to prevent an "attack on the Euro".
The second Bail-out Loan in February 2012 replaced the first Bail-out and was for 240 Billion Euros to cover more maturing financial obligations that had been discovered.
It became clear at this point that the Greek Economy was facing major problems and that drastic action was required to ensure that Public Expenditure was covered by Tax Income. In fact a major overhawl of previous practices was needed.
EUROZONE creditors were becoming anxious. They wanted neither a "Grexit" nor to write down, even partially, the value of the Debts of 240 Billion Euros.
However, Tsipras was elected on January 25, 2015 as the new left wing Prime Minister of Greece after he had promised Voters that he would request a Debt write-down in future negotiations !
This Debt write-off has not yet been granted by Creditors. It has taken more than six months to finally agree a 3rd, two-year, Bail-out of 85 Billion Euros ! Attached are stiff conditions which will mean more misery and pain for Greek Taxpayers and Pensioners !
This 3rd Bail-out must be agreed by Greek electors and at present it is not at all clear what will happen ! However, what this Bail-out does ensure is that GREEK Banks will be supplied by the European Central Bank with "cash" to permit Greek citizens to withdraw money from their accounts and purchase what is required to survive ! In the end this could lead to an acceptance of this 3rd Bail-out !
However Greece, a country of only 10 million people, could never repay 300+ billion Euros ! Is the logical conclusion not that in the next two years Greece will declare itself bankrupt and leave the EUROZONE ?
Would it not adopt the old Drachma but also try to stay in the EU ?
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