{"id":18230,"date":"2018-08-19T14:00:09","date_gmt":"2018-08-19T11:00:09","guid":{"rendered":"https:\/\/bestinsurance.gr\/a1\/?p=18230"},"modified":"2018-08-19T14:00:09","modified_gmt":"2018-08-19T11:00:09","slug":"then-and-now-how-crises-and-bailouts-changed-greeces-economy","status":"publish","type":"post","link":"https:\/\/bestinsurance.gr\/a1\/archives\/18230","title":{"rendered":"Then and Now: How Crises and Bailouts Changed Greece\u2019s Economy"},"content":{"rendered":"<section class=\"news-rsf-text-headlines\">\n<h1>Then and Now: How Crises and Bailouts Changed Greece\u2019s Economy<\/h1>\n<\/section>\n<section class=\"news-header\">\n<div class=\"news-rsf-toa\">Sunday, August 19, 2018 10:00 AM<\/div>\n<p class=\"news-byline\">By Marcus Bensasson<\/p>\n<div class=\"news-rsf-abstract\">\n<ul>\n<li>Aid came with rules that transformed public finances, banks<\/li>\n<li>Economic slump pushed up unemployment, left Greeks poorer<\/li>\n<\/ul>\n<\/div>\n<p><span class=\"news-dateline\">(Bloomberg) &#8212;<\/span><\/section>\n<section class=\"news-rsf-news-body\">Greece is about to exit its bailout, a symbolic move past a <a id=\"url-id-0\" class=\"link-enabled\" title=\"Greek Banks Face Higher Costs Post-Bailout as ECB Ends Waiver\" href=\"bloomberg:\/\/commands\/NSN%20PD8W7Y6TTDSB\">debt crisis<\/a> that exploded eight years ago and left the economy, and the lives of its people, completely changed.<\/p>\n<p>At the time of the May 2010 aid package &#8212; the first of three &#8212; politicians from euro-area creditor countries argued the crisis was the result of chronic fiscal and economic indiscipline. To justify breaching a \u201cno bailout clause,\u201d loans were tied to <a title=\"European Commission compliance report on fourth bailout review\" href=\"https:\/\/ec.europa.eu\/info\/sites\/info\/files\/economy-finance\/compliance_report_4r_2018.06.20.docx.pdf\">strict conditions<\/a>, covering fiscal sustainability, financial stability, growth and competitiveness, and reform of public administration and justice.<\/p>\n<p>So how has Greece performed?<\/p>\n<h3>Economic Hit<\/h3>\n<p>While Greece\u2019s crash rippled far beyond the borders of the country of just 11 million people, the effect at home was particularly dramatic. <a id=\"url-id-2\" class=\"link-enabled\" title=\"Greek GDP q\/q\" href=\"bloomberg:\/\/commands\/GKGNVQQ%20Index%20DES\">Economic output <\/a>fell by a quarter and living standards collapsed after the loss of more than a million jobs pushed unemployment at one point to 28 percent.<\/p>\n<figure data-type=\"image\" data-id=\"330244063\" data-image-type=\"chart\" data-image-size=\"full\" data-align=\"center\"><a href=\"bloomberg-external-media-https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ilDWlFtEZIVg\/v1\/-1x-1.png\"><img decoding=\"async\" src=\"https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ilDWlFtEZIVg\/v1\/640x-1.png\" srcset=\"https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ilDWlFtEZIVg\/v1\/-1x-1.png 1200w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ilDWlFtEZIVg\/v1\/405x270.png 405w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ilDWlFtEZIVg\/v1\/488x-1.png 488w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ilDWlFtEZIVg\/v1\/380x252.png 380w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ilDWlFtEZIVg\/v1\/-1x399.png 623w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ilDWlFtEZIVg\/v1\/-1x500.png 781w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ilDWlFtEZIVg\/v1\/750x-1.png 750w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ilDWlFtEZIVg\/v1\/628x-1.png 628w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ilDWlFtEZIVg\/v1\/640x-1.png 640w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ilDWlFtEZIVg\/v1\/360x240.png 360w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ilDWlFtEZIVg\/v1\/600x-1.png 600w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ilDWlFtEZIVg\/v1\/360x-1.png 360w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ilDWlFtEZIVg\/v1\/368x-1.png 368w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ilDWlFtEZIVg\/v1\/-1x240.png 375w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ilDWlFtEZIVg\/v1\/620x413.png 620w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ilDWlFtEZIVg\/v1\/630x420.png 630w\" \/><\/a><figcaption>\n<div class=\"news-figure-caption-text\"><\/div>\n<\/figcaption><\/figure>\n<\/section>\n<p>&nbsp;<\/p>\n<section class=\"news-rsf-news-body\">\n<h3>Public finances<\/h3>\n<p>The Greek leg of the global financial crisis was sparked when <a id=\"url-id-3\" class=\"link-enabled\" title=\"Bloomberg Profile\" href=\"bloomberg:\/\/commands\/BBDP%201731707\">George Papandreou<\/a>\u2019s newly elected government revealed that the country had misled the world about its finances and the 2009 budget deficit had swelled to more than 15 percent of gross domestic product, five times the EU limit.<\/p>\n<p>In recent years, the debate on Greek finances has turned more to the amount of <a id=\"url-id-4\" class=\"link-enabled\" title=\"Now Greek Bonds Are a Better Alternative to Italy, Says SocGen\" href=\"bloomberg:\/\/commands\/NSN%20PDHZIM6VDKHS\">public debt<\/a> and the fiscal balance excluding the costs of servicing that debt. That\u2019s meant less attention on the fact that for two years now, revenue has exceeded spending and the government has run an overall surplus.<\/p>\n<figure data-type=\"image\" data-id=\"330240624\" data-image-type=\"chart\" data-image-size=\"full\" data-align=\"center\"><a href=\"bloomberg-external-media-https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/isVArnB8JGfM\/v1\/-1x-1.png\"><img decoding=\"async\" src=\"https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/isVArnB8JGfM\/v1\/640x-1.png\" srcset=\"https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/isVArnB8JGfM\/v1\/-1x-1.png 1200w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/isVArnB8JGfM\/v1\/405x270.png 405w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/isVArnB8JGfM\/v1\/488x-1.png 488w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/isVArnB8JGfM\/v1\/380x252.png 380w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/isVArnB8JGfM\/v1\/-1x399.png 623w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/isVArnB8JGfM\/v1\/-1x500.png 781w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/isVArnB8JGfM\/v1\/750x-1.png 750w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/isVArnB8JGfM\/v1\/628x-1.png 628w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/isVArnB8JGfM\/v1\/640x-1.png 640w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/isVArnB8JGfM\/v1\/360x240.png 360w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/isVArnB8JGfM\/v1\/600x-1.png 600w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/isVArnB8JGfM\/v1\/360x-1.png 360w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/isVArnB8JGfM\/v1\/368x-1.png 368w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/isVArnB8JGfM\/v1\/-1x240.png 375w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/isVArnB8JGfM\/v1\/620x413.png 620w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/isVArnB8JGfM\/v1\/630x420.png 630w\" \/><\/a><\/figure>\n<\/section>\n<p>This has been achieved by slashing spending while holding revenue more or less unchanged. But given the extent of the slump, maintaining steady revenue meant a huge squeeze on middle-class Greeks, who\u2019ve had to stump up more and more in taxes.<\/p>\n<figure data-type=\"image\" data-id=\"330240461\" data-image-type=\"chart\" data-image-size=\"full\" data-align=\"center\"><a href=\"bloomberg-external-media-https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ielzx5oIEvyE\/v1\/-1x-1.png\"><img decoding=\"async\" src=\"https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ielzx5oIEvyE\/v1\/640x-1.png\" srcset=\"https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ielzx5oIEvyE\/v1\/-1x-1.png 1200w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ielzx5oIEvyE\/v1\/405x270.png 405w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ielzx5oIEvyE\/v1\/488x-1.png 488w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ielzx5oIEvyE\/v1\/380x252.png 380w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ielzx5oIEvyE\/v1\/-1x399.png 623w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ielzx5oIEvyE\/v1\/-1x500.png 781w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ielzx5oIEvyE\/v1\/750x-1.png 750w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ielzx5oIEvyE\/v1\/628x-1.png 628w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ielzx5oIEvyE\/v1\/640x-1.png 640w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ielzx5oIEvyE\/v1\/360x240.png 360w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ielzx5oIEvyE\/v1\/600x-1.png 600w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ielzx5oIEvyE\/v1\/360x-1.png 360w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ielzx5oIEvyE\/v1\/368x-1.png 368w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ielzx5oIEvyE\/v1\/-1x240.png 375w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ielzx5oIEvyE\/v1\/620x413.png 620w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ielzx5oIEvyE\/v1\/630x420.png 630w\" \/><\/a><\/figure>\n<p>&nbsp;<\/p>\n<h3>Public Administration<\/h3>\n<p>On the spending side, Greece\u2019s fiscal problems were partly caused by an explosion of public sector jobs in the years before the crash. A refusal to fire workers became an early <a id=\"url-id-5\" class=\"link-enabled\" title=\"Greece Faces 150,000 Job-Cut Hurdle to Aid Payment: Euro Credit\" href=\"bloomberg:\/\/commands\/NSN%20MJI9GX07SXKX\">flash point<\/a> between the government and the bailout providers.<\/p>\n<figure data-type=\"image\" data-id=\"330240484\" data-image-type=\"chart\" data-image-size=\"full\" data-align=\"center\"><a href=\"bloomberg-external-media-https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/iULlXxSd928E\/v1\/-1x-1.png\"><img decoding=\"async\" src=\"https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/iULlXxSd928E\/v1\/640x-1.png\" srcset=\"https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/iULlXxSd928E\/v1\/-1x-1.png 1200w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/iULlXxSd928E\/v1\/405x270.png 405w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/iULlXxSd928E\/v1\/488x-1.png 488w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/iULlXxSd928E\/v1\/380x252.png 380w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/iULlXxSd928E\/v1\/-1x399.png 632w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/iULlXxSd928E\/v1\/-1x500.png 792w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/iULlXxSd928E\/v1\/750x-1.png 750w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/iULlXxSd928E\/v1\/628x-1.png 628w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/iULlXxSd928E\/v1\/640x-1.png 640w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/iULlXxSd928E\/v1\/360x240.png 360w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/iULlXxSd928E\/v1\/600x-1.png 600w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/iULlXxSd928E\/v1\/360x-1.png 360w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/iULlXxSd928E\/v1\/368x-1.png 368w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/iULlXxSd928E\/v1\/-1x240.png 380w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/iULlXxSd928E\/v1\/620x413.png 620w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/iULlXxSd928E\/v1\/630x420.png 630w\" \/><\/a><figcaption>\n<div class=\"news-figure-caption-text\"><\/div>\n<\/figcaption><\/figure>\n<p>&nbsp;<\/p>\n<p>Those arguments dissipated after Greece reduced the public payrolls by 150,000 jobs by only hiring one person for every five departures and not renewing temporary contracts.<\/p>\n<p>Still, progress has been slow in improving the speed of resolving civil disputes in the justice system, and the burden of red tape has made it harder to attract investment.<\/p>\n<h3>Competitiveness<\/h3>\n<p>Over the last eight years, a constant refrain from euro-area nations and the IMF was that Greece needs more structural reforms to make it more competitive. Over three bailouts, it\u2019s sold state assets, made <a id=\"url-id-6\" class=\"link-enabled\" title=\"What\u2019s in the Bailout Deal for Greece and What Happens Next?\" href=\"bloomberg:\/\/commands\/NSN%20NRFC9MSYF024\">sweeping changes<\/a> to the electricity market and change regulations covering everything from lawyers to hairdressers.<\/p>\n<p>There was also a big fall in labor costs, particularly after reforms to collective bargaining rules and a cut in the minimum wage in 2012. Bailout lenders argue that the drop merely offset the big run-up in the years before the crisis, which wasn\u2019t matched by an increase in the economy\u2019s productive capacity.<\/p>\n<figure data-type=\"image\" data-id=\"330240513\" data-image-type=\"chart\" data-image-size=\"full\" data-align=\"center\"><a href=\"bloomberg-external-media-https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/igY5tnTMoTks\/v1\/-1x-1.png\"><img decoding=\"async\" src=\"https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/igY5tnTMoTks\/v1\/640x-1.png\" srcset=\"https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/igY5tnTMoTks\/v1\/-1x-1.png 1200w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/igY5tnTMoTks\/v1\/405x270.png 405w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/igY5tnTMoTks\/v1\/488x-1.png 488w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/igY5tnTMoTks\/v1\/380x252.png 380w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/igY5tnTMoTks\/v1\/-1x399.png 623w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/igY5tnTMoTks\/v1\/-1x500.png 781w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/igY5tnTMoTks\/v1\/750x-1.png 750w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/igY5tnTMoTks\/v1\/628x-1.png 628w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/igY5tnTMoTks\/v1\/640x-1.png 640w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/igY5tnTMoTks\/v1\/360x240.png 360w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/igY5tnTMoTks\/v1\/600x-1.png 600w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/igY5tnTMoTks\/v1\/360x-1.png 360w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/igY5tnTMoTks\/v1\/368x-1.png 368w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/igY5tnTMoTks\/v1\/-1x240.png 375w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/igY5tnTMoTks\/v1\/620x413.png 620w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/igY5tnTMoTks\/v1\/630x420.png 630w\" \/><\/a><\/figure>\n<div class=\"news-figure-caption-text\"><\/div>\n<div><\/div>\n<p>Along with rising taxes and the loss of jobs, the hit to wages was a major contributor to the drop in Greek living standards. Prime Minister <a id=\"url-id-7\" class=\"link-enabled\" title=\"Bloomberg Profile\" href=\"bloomberg:\/\/commands\/BBDP%2017570235\">Alexis Tsipras <\/a>wants to roll back some of the labor reforms after the bailout, including increasing the <a id=\"url-id-8\" class=\"link-enabled\" title=\"From Pay Rises to New Banks, Here\u2019s Greece\u2019s Post-Bailout Plan\" href=\"bloomberg:\/\/commands\/NSN%20P7UH1I6VDKHS\">minimum wage<\/a>.<\/p>\n<p>Greece hasn\u2019t experienced the kind of export-led recovery seen in other crisis countries, like Ireland and Spain. But it\u2019s almost eliminated its external current account deficit, as well as increasing exports\u2019 low share of GDP.<\/p>\n<figure data-type=\"image\" data-id=\"330240546\" data-image-type=\"chart\" data-image-size=\"full\" data-align=\"center\"><a href=\"bloomberg-external-media-https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ieiXJIazFU_c\/v1\/-1x-1.png\"><img decoding=\"async\" src=\"https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ieiXJIazFU_c\/v1\/640x-1.png\" srcset=\"https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ieiXJIazFU_c\/v1\/-1x-1.png 1200w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ieiXJIazFU_c\/v1\/405x270.png 405w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ieiXJIazFU_c\/v1\/488x-1.png 488w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ieiXJIazFU_c\/v1\/380x252.png 380w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ieiXJIazFU_c\/v1\/-1x399.png 597w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ieiXJIazFU_c\/v1\/-1x500.png 749w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ieiXJIazFU_c\/v1\/750x-1.png 750w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ieiXJIazFU_c\/v1\/628x-1.png 628w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ieiXJIazFU_c\/v1\/640x-1.png 640w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ieiXJIazFU_c\/v1\/360x240.png 360w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ieiXJIazFU_c\/v1\/600x-1.png 600w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ieiXJIazFU_c\/v1\/360x-1.png 360w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ieiXJIazFU_c\/v1\/368x-1.png 368w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ieiXJIazFU_c\/v1\/620x413.png 620w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/ieiXJIazFU_c\/v1\/630x420.png 630w\" \/><\/a><figcaption>\n<div class=\"news-figure-caption-text\"><\/div>\n<\/figcaption><\/figure>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h3>Financial sector<\/h3>\n<p>At the outset of the Greek crisis, the country\u2019s bankers liked to argued that their institutions were conservatively run, and that this was a problem born in the public sector. Whatever the truth of the claim, it didn\u2019t take long for a sovereign-banking doom loop to lay the sector to waste.<\/p>\n<p>They were rendered insolvent for a while after the 2012 debt restructuring wiped out the value of their bond portfolios, and three years later they were shuttered for weeks before reopening with capital controls in place. They\u2019re still dealing with the fallout, saddled with <a id=\"url-id-9\" class=\"link-enabled\" title=\"Greek Banks\u2019 Bill of Health Frees Bailout Funds for Debt Relief\" href=\"bloomberg:\/\/commands\/NSN%20P88YD6SYF01S\">soured loans<\/a> amounting to almost 50 percent of their book.<\/p>\n<figure data-type=\"image\" data-id=\"330240627\" data-image-type=\"chart\" data-image-size=\"full\" data-align=\"center\"><a href=\"bloomberg-external-media-https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/iM4yXhFwHVmE\/v1\/-1x-1.png\"><img decoding=\"async\" src=\"https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/iM4yXhFwHVmE\/v1\/640x-1.png\" srcset=\"https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/iM4yXhFwHVmE\/v1\/-1x-1.png 1200w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/iM4yXhFwHVmE\/v1\/405x270.png 405w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/iM4yXhFwHVmE\/v1\/488x-1.png 488w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/iM4yXhFwHVmE\/v1\/380x252.png 380w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/iM4yXhFwHVmE\/v1\/-1x399.png 623w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/iM4yXhFwHVmE\/v1\/-1x500.png 781w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/iM4yXhFwHVmE\/v1\/750x-1.png 750w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/iM4yXhFwHVmE\/v1\/628x-1.png 628w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/iM4yXhFwHVmE\/v1\/640x-1.png 640w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/iM4yXhFwHVmE\/v1\/360x240.png 360w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/iM4yXhFwHVmE\/v1\/600x-1.png 600w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/iM4yXhFwHVmE\/v1\/360x-1.png 360w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/iM4yXhFwHVmE\/v1\/368x-1.png 368w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/iM4yXhFwHVmE\/v1\/-1x240.png 375w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/iM4yXhFwHVmE\/v1\/620x413.png 620w, https:\/\/assets.bwbx.io\/images\/users\/iIyChnKQ1lHc\/iM4yXhFwHVmE\/v1\/630x420.png 630w\" \/><\/a><figcaption>\n<div class=\"news-figure-caption-text\"><\/div>\n<\/figcaption><\/figure>\n<p>These travails have led to a loss of deposits and inter-bank funding lines, with lenders kept on life support by central bank liquidity. The need for that emergency funding has steadily diminished and, in the buildup to the bailout exit, it was even surpassed by interbank funding for the first time since the start of the crisis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Then and Now: How Crises and Bailouts Changed Greece\u2019s Economy Sunday, August 19, 2018 10:00 AM By Marcus Bensasson Aid came with rules that transformed public finances, banks Economic slump pushed up unemployment, left Greeks poorer (Bloomberg) &#8212; Greece is about to exit its bailout, a symbolic move past a debt crisis that exploded eight<\/p>\n","protected":false},"author":1,"featured_media":17426,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[2],"tags":[],"class_list":["post-18230","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-2"],"jetpack_publicize_connections":[],"_links":{"self":[{"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/posts\/18230","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/comments?post=18230"}],"version-history":[{"count":3,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/posts\/18230\/revisions"}],"predecessor-version":[{"id":18233,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/posts\/18230\/revisions\/18233"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/media\/17426"}],"wp:attachment":[{"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/media?parent=18230"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/categories?post=18230"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/tags?post=18230"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}