Greece Government Debt

Crisis

MUHAMMAD AZIM SHAHIR BIN

MOHAMMAD BUHAIRI
MUHAMMAD ZAWAWI BIN YUSOF
ADAM FARHAN BIN MOHD SHARIFF
MOHD AKMAL HAKIMI BIN MOHD FOUZI

2014504853
2014396137
2014754603
2014581357

BACKGROUND
Greecesaid on Aug. 11 that it had reached a deal with its
international creditors for a third bailout that would
provide aid worth up to 86 billion euros, or about $94.4
billion, in exchange for harsh austerity terms. But a
number of European officials expressed caution, and it
remained uncertain whether the accord would satisfy
Germany or be ratified by other European governments.
Greece needs a new aid program by Aug. 20, when the
country is scheduled to make a payment of 3.2 billion
euros on bonds held by the European Central Bank.
TheInternational Monetary Fundhas threatened to
withdraw support for Greeces bailout unless European
leaders agree to substantial debt relief.

WHAT ACTUALLY
HAPPENED?
In late 2009, fears developed about Greece's
ability to meet its debt obligations, due to
revelations that previous data ongovernment
debtlevels and deficits had been misreported by
the Greek government.
In 2012, Greece's government had the
largestsovereign debt defaultin history
In June 30, 2015, Greece became the
firstdeveloped countryto fail to make anIMFloan
repayment. At that time, Greece's government
had debts of 323bn.

GREECE IN EUROZONE
Eurozone is amonetary unionof 19 of the 28 Including
Greece that joined since 2001, which have adopted
theeuro()
In April 2010, Eurozone accept to give 110billion loan
to Greece.
Oct 2012 , Eurozone Offered second loan of 130 billion.
What if Greece left the eurozone?
some people believe that if Greece were to leave the
currency union, in what is known as a Grexit, it wouldnt
be such a catastrophe. Europe has put up safeguards to
limit the so-called financial contagion, in an effort to keep
the problems from spreading to other countries

Causes
1.
Inefficient
Pension
System

5. Tax
Evasion

4. High
Unemploy
ment and
Work
Culture
Issues

2. Too
Many
Benefits to
Citizens

3. Early
Retirement

WHAT HAPPENED IN 2015

Out
From
Eurozon
e
Cash
Limit
From
ATM

New
Bailout
Deal

Riot

Statistic

Debt in European Union

Greeces G.D.P. and Unemployment Rates in

CAN MALAYSIA GET

BANKRUPT LIKE GREECE?
6th in BPI
Growth in GDP
Global Competitiveness Report
why then is the Ringgit weak?

Lessons we can learn

from Greece Financial
Crisis
Live within your means
Avoid over borrowing or over bailout
Develop your own strategy; Coming out from your
own challenges & experiences
Depend on your natural competencies/Resources
Delaying in clearing your debts is cost