A CRUCIAL STEP TO ENSURE
REAL ESTATE MARKET GROWTH
Since 2008,
Greece has been involved in a three-fold overall crisis:
- A €240bn sovereign debt crisis with sovereign debt/GDP and yields on government bonds rising to unsustainable levels.
- An economic growth crisis more protracted and deep than any other European country, resulting in a 25% drop in GDP and a rise in official unemployment to 28%.
- A banking sector crisis caused by the sector’s significant exposure to Greek sovereign debt, a €100bn deposit flight from the system as well as high levels of private debt, rendering many banks unable to cope stand-alone due to the simultaneous occurrence of all these.
The sovereign debt crisis, after a first inconclusive €110bn bail-out in 2010, was finally dealt with by a second, more decisive €130bn bailout in combination with a €100bn one-off sovereign debt write-down in Q1 2012 and the strict implementation of structural reforms that followed and which was designed to ensure the future affordability of the remaining and new debt obligations.
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Article by,
Elena Dilara
