Abstract
The euro zone crisis started in early 2010 when it emerged that the Greek government had for years doctored the official data on its deficits and debt. The figures for the deficit and debt level presented by the new government were so much higher than the previous ones that rating agencies and many market participants downgraded their assessment of Greece’s ability to service its debt fully. As a result, the cost of refinancing the Greek debt increased sharply and the government could not secure the resources needed to fund its current deficit and roll over the portion of the debt coming due. By the end of April 2010 it had to be bailed out with a ϵ110 billion programme.
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Gros, D., Alcidi, C. (2016). euro zone crisis 2010. In: Jones, G. (eds) Banking Crises. Palgrave Macmillan, London. https://doi.org/10.1057/9781137553799_12
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DOI: https://doi.org/10.1057/9781137553799_12
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