Placeholder Image

Subtitles section Play video

  • 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 andtreasury 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!

Greece is currently about 400 billion dollars in debt. That’s about 170% of their annual

Subtitles and vocabulary

Operation of videos Adjust the video here to display the subtitles

B1 US greece debt eurozone financial bankrupt bailout

Why Does Greece Have So Much Debt?

  • 247 32
    James posted on 2015/06/15
Video vocabulary