Greece is currently about 400 billion dollars
in debt. That’s about 170% of their annual Gross Domestic Product. Over the next 50 years
they are scheduled to repay that debt. But with the economy in shambles, many experts
wonder if that goal is really attainable. But how did Greece end up with so much debt
in the first place? And to whom, specifically, does Greece owe money? Greece became somewhat politically and economically
unstable back in the 1970s after an attempted government coup. Nevertheless, after a profit
spike in the 1990s, they met the fiscal requirements to join the Eurozone, in the year 2000. This
event inextricably tied Greece to stronger economies like Germany and France, and allowed
Grecians more access to low-interest loans. So, public spending and government borrowing
soared, even as Greece’s debt remained higher than the Eurozone average in the 2000s.  When
the international Recession of 2008 hit, Greece spiraled into a debt crisis. To make matters
worse, in 2009, it was revealed that Greece had been falsifying reports on their debt
for years. When the real statistics were exposed, their national credit rating took a plunge,
which in turn, caused investors to jack up interest rates. Greece has been on the brink
of bankruptcy ever since. German Chancellor Angela Merkel later said that “[Europe]
should not have accepted Greece into the eurozone”. Out of the roughly 320 Billion Dollars in
bailout money that Greece must eventually pay back,  most of it, or about 47%, is due
to the European Financial Stability Facility. This is a temporary organization created by
Eurozone members to pool money tog ether and help stabilize member countries in crisis.
Greece, Portugal and Ireland are the primary recipients of the EFSF. 19% of Greece’s debt is held by other Eurozone
Governments. Another 12% is held by private investors. And the rest – about 22% – is held
by the European Central Bank, the International Monetary Fund and “treasury bill holders”,
who are primarily Greek banks., . Yet, after all the financial help, Greece
remains in trouble. The unemployment rate for those aged 15 to 24 is at 55%. Further,
budget cuts are so unpopular that they have led to riots and protests. Meanwhile Greece
and other European Governments are locked in heated dispute as to whether Greece should
or even COULD make more financial reforms. Germany, and France, who have invested nearly
115 Billion Dollars in the country, don’t want to see Greece default on its debt, but
they are also refusing to give Greece another bailout. During the next half century, Greece needs
to stimulate its economy while decreasing government spending. In the end, most experts
agree that Greece will not be allowed to go bankrupt. The financial loss for other Western
countries, including the United States, would be too great, and could potentially create
another international recession. Although it’s uncommon, and definitely not
the same as with people, countries can end up bankrupt. To learn more, make sure you
check out this full video now. Thanks for watching guys! See you all tomorrow!