Bailout Agreement

Federal Finance Minister Wolfgang Schauble and Eurogroup President Jean-Claude Juncker have shared the skepticism and have not ruled out a third bailout. [4] [5] According to an official report by the European Commission, the ECB and the IMF, Greece may need an additional 50 billion euros ($66 billion) between 2015 and 2020. [6] On 15 April 2013, troika staff teams completed their mission in Greece as part of the second revision of the second adjustment programme. The mission has reached an agreement with the authorities on the economic and financial policies needed to ensure that the programme remains on track to achieve its objectives. On November 24, 2008, U.S. Republican Congressman Ron Paul (R-TX) wrote: “By bailing out failing companies, they are confiscating money from productive members of the economy and giving it to those who have failed. By supporting companies with outdated or unsustainable business models, the government prevents liquidating their resources and making them available to other companies that may expose them to better and more productive use. An essential element of a healthy free market is that success and failure must be allowed when they are deserved. But instead, the rewards are cancelled out by a bailout – the revenues of successful businesses are attributed to bankrupt companies. How good this should be for our economy, I have no other thing…. It`s not going to work. It can`t work….

For most Americans, it is clear that we must reject corporate nepotism and allow the natural rules and incentives of the free market to choose the winners and losers in our economy, not the whims of bureaucrats and politicians. [58] During the 2012-13 Cyprus financial crisis, the Cypriot economy experienced a crisis when the Greek financial crisis (which exposed Cypriot banks heavily) threatened Cypriot banks, causing financial panic, bank blows and a downgrade of the government bond rating to junk status. [40] In March 2013, the European Troika, a loose coalition of the European Union, the European Central Bank and the International Monetary Fund, announced a 10 billion euro bailout in exchange for Cyprus` willingness to close its second largest bank, Cyprus Popular Bank, including laiki Bank. The Cypriots had to agree to collect all uninsured deposits and perhaps about 40% of uninsured deposits from Bank of Cyprus, the island`s largest commercial bank. [41] [42] Once a first proposal has been replaced by the final proposal, no guaranteed bond of €100,000 or less should be affected. [43] [44] Deposits over 100,000 euros have been called “bailout-in” to distinguish them from a state-backed bailout. [45] [46] The Bank of Cyprus executed the lease-in on April 28, 2013. [45] On 14 August, after a nightly debate, the Greek Parliament backed the country`s new bailout, although more than 40 Syriza MPs voted against the deal and Tsipras needed the support of the opposition: New Democracy, To Potami and PASOK. [12] Following Parliament`s decision, the Eurogroup welcomed the agreement reached between Greece and its lenders and initiated the necessary national procedures to approve the new ESM programme.