EU Remains Confident In Greece's Financial Stability After Third Bailout Program End
Greece has signed up to three international bailouts since 2010, when its debt crisis broke out, in exchange for unpopular reforms and painful austerity. The third program expires on August 20. Greece has agreed to implement more pension cuts and tax increases in 2019-2020 after the end of the bailout. Greece’s debt currently stands at about 180% of its GDP.
IMF took part in the two first bailouts of 240 billion euros ($280.88 billion) that began in 2010 but not a third in 2015 for 86 billion euros ($100.65 billion) provided by the Troika of the European Union-European Central Bank-European Stability Mechanism (EU-ECB-ESM) that struck a deal to give Greece a longer time to repay and lower interest rates.
Alexis Tsipras (Prime Minister) wants Greece to rely on debt markets for its financing needs without any more external support, although some economists have said it would be wise to secure a precautionary credit line from the European Union or International Monetary Fund.
"Greece can now stand on its own two feet, the time has come for Greece to be a normal country," Pierre Moscovici (European economic and financial affairs commissioner) stated. According to Moscovici, the "troika" of mission (chiefs from the EU, European Central Bank and IMF) will no longer visit Athens to review its bailout progress.