Editing History of modern Greece (section)

===Government-Debt Crisis (2009–2018)===
{{Main|Greek government-debt crisis}}
{{Update section|date=October 2016}}

From late 2009, fears of a [[sovereign debt crisis]] developed among investors concerning Greece's ability to meet its debt obligations due to strong increase in [[government debt]] levels.<ref>{{cite news |url=https://www.reuters.com/article/idUSLDE61F0W720100216 |title= Peripheral euro zone government bond spreads widen |publisher=Reuters |author=George Matlock |date=16 February 2010 |access-date=28 April 2010}}</ref><ref>{{cite news|url=http://www.economist.com/node/16009099 |title=Acropolis now |newspaper=The Economist |date=29 April 2010 |access-date=22 June 2011}}</ref> This led to a crisis of confidence, indicated by a widening of [[bond (finance)|bond]] [[yield spread]]s and risk insurance on [[credit default swap]]s compared to other countries, most importantly Germany.<ref>{{cite web |url=http://www.financialmirror.com/News/Cyprus_and_World_News/20151 |title=Greek/German bond yield spread more than 1,000 bps |publisher=Financialmirror.com |date=28 April 2010 |access-date=5 May 2010 }}{{dead link|date=January 2021|bot=medic}}{{cbignore|bot=medic}}</ref><ref>{{cite web|url=http://www.ft.com/cms/s/0/7d25573c-1ccc-11df-8d8e-00144feab49a.html |archive-url=https://ghostarchive.org/archive/20221210/http://www.ft.com/cms/s/0/7d25573c-1ccc-11df-8d8e-00144feab49a.html |archive-date=10 December 2022 |url-access=subscription |url-status=live |title=Gilt yields rise amid UK debt concerns |work=Financial Times |date=18 February 2010 |access-date=15 April 2011}}</ref> Downgrading of Greek government debt to [[High-yield debt|junk bonds]] created alarm in financial markets.

On 2 May 2010, the Eurozone countries and the [[International Monetary Fund]] agreed on a {{Nowrap|€110 billion}} loan for Greece, conditional on the implementation of harsh austerity measures.<ref>{{Cite web |last= |first= |date=2010 |title=IMF Survey: Europe and IMF Agree &#8364;110 Billion Financing Plan With Greece |url=https://www.imf.org/en/News/Articles/2015/09/28/04/53/socar050210a |access-date=2025-02-15 |website=IMF |language=en}}</ref> In October 2011, Eurozone leaders also agreed on a proposal to write off 50% of Greek debt owed to private creditors, increasing the EFSF to about €1 trillion and requiring European banks to achieve 9% capitalisation to reduce the risk of [[Financial contagion|contagion]] to other countries.<ref>{{Cite journal |last=Pagoulatos |first=George |date=2018 |title=Greece after the Bailouts: Assessment of a Qualified Failure |url=https://www.lse.ac.uk/Hellenic-Observatory/Assets/Documents/Publications/GreeSE-Papers/GreeSE-No130.pdf |journal=Hellenic Observatory Papers on Greece and Southeast Europe - London School of Economics and Political Science |language=en}}</ref> These austerity measures proved to be extremely unpopular with the public in Greece, precipitating demonstrations and civil unrest.<ref>{{Cite news |last=Donadio |first=Rachel |last2=Kitsantonis |first2=Niki |date=2011-10-19 |title=Thousands in Greece Protest Austerity Bill |url=https://www.nytimes.com/2011/10/20/world/europe/greek-workers-start-two-day-anti-austerity-strike.html |access-date=2025-02-15 |work=The New York Times |language=en-US |issn=0362-4331}}</ref>

There are widespread fears that a Greek default on its debt would have global repercussions, endangering the economies of many other countries in the European Union, threatening the stability of the European currency, the euro, and possibly plunging the world into another recession. It has been speculated that the crisis may force Greece to abandon the euro and return to the drachma. In April 2014, Greece returned to the global bond market as it successfully sold €3 billion worth of five-year government bonds at a yield of 4.95%.<ref>{{Cite news |last=Wearden |first=Graeme |last2=Smith |first2=Helena |date=2014-04-10 |title=Greek bond sale hailed a success after raising €3bn |url=https://www.theguardian.com/business/2014/apr/10/greece-raises-3bn-euro-successful-bond-sale |access-date=2025-02-15 |work=The Guardian |language=en-GB |issn=0261-3077}}</ref> According to the IMF, Greece will have real GDP growth of 0.6% in 2014 after five years of decline.<ref>{{Cite journal |title=Greece. Fifth review under the extended arrangement under the extended fund facility, and request for waiver of nonobservance of permance criterion and rephasing of access; Staff report; Press release; and statement by the executive director for Greece |url=https://www.imf.org/external/pubs/ft/scr/2014/cr14151.pdf |journal=International Monetary Fund |location=Washington, D.C. |volume=IMF Country Report No. 14/151}}</ref>