Group 5B

CEO : Mallika Tandon

Raghav Vig

Mohit Taneja

Linh Pham Thuy

Ankit Singhvi Mahipatraj

IMFs Involvement in
Greek Crisis

Literature Review

TheInternational Monetary Fund(IMF) is an international organization

headquartered inWashington, DC, of "188 countries working to

foster global monetary cooperation

secure financial stability,

facilitate international trade

promote high employment

sustainable economic growth

reduce poverty around the world

Greece was one of the country which was affected the most by
the economic crisis. IMF played a major role in helping Greece
overcoming the economic crisis by providing bailouts.
The first bailout was given to Greece in 2010 of amount 107.3
billion of financial assistance, 72.8 billion were disbursed by
March 2012 comprising the undisbursed amounts of the first
programme
and additional 130 billion for the years 201214.

Literature Review
(References)

Howard, S. (3). IMF agrees to the latest Greek rescue

package.Washington Post, The.

Hugo, D. (2013, June 7). IMF broke rules with 220bn

Greek deals.Daily Mail. p. 8.

Daponte-Smith, N. (2015). The IMF And David Cameron

Express Reservations Over Greek Deal.Forbes.Com, 26

Kouretas, G. P., & Vlamis, P. (2010). The Greek crisis:

causes and implications.Panoeconomicus,57(4), 391-404.

Meghir, C., Vayanos, D., & Vettas, N. (2010). The

economic crisis in Greece: a time of reform and
opportunity.August,5, 5-6.

The Greek Crisis: Causes and Implications

This paper mainly discusses about the origin of Greek crisis and its implication on euro currency and
the whole of Europe. In the aftermath of the 2007-2009 financial crisis the enormous increase in
debt which has led to negative outcome, since public debt was dramatically increased in an effort by
the US and the European governments to reduce the accumulated growth of private debt in the years
preceding the recent financial turmoil. Although Greece is the country member of the euro zone that
has been in the middle of this ongoing debt crisis, since November 2009 when it was made clear that
its budget deficit and mainly its public debt were not sustainable. As a result of this negative
downturn the Greek government happily accepted a rescue plan of 110 billion euros designed and
financed by the European Union and the IMF. A long and strict austerity steps are to be implemented
in the next three years.

The Economic Opportunity of Greece's exit

The economic opportunity of Greece's exit When the Euro crisis erupted in 2010, with lacking the
necessary expertise and avoiding the Eurozones collapse became the top political imperative, so
they turned to the IMF for help.However, with the irregularities in the Fund's resulting intervention, it
reveals that the aim of the Greek bailout was not to restore prosperity to the country's people, but
to save the Euro zone. If Greece exit from the Eurozone, which would allow Greece to begin
correcting past mistakes and putting its economy on the path to recovery and sustainable growth. At
that point, the EU would be wise to follow suit, by unravelling the currency union and providing debt
reduction for its most distressed economies. Only then can the EU's founding ideals be realized.

IMF agrees to the latest Greek rescue package

The article describes the attempt of IMF to provide aid to Greece in form of $36 Billion. IMF aims to distribute
the money over a period of 4 years which will help heavily indebted Greek government afloat provided Greece
restructures its economy, trims public payrolls and spending and grapples with deep recession1. The ECBs
measures taken were convincing European officials that the worst crisis was over. Reviewing the years 2010 and
2011, IMF was optimistic that Greeces problems did not seem so dire and that the risk to other European
nations seem to reduce since private bond holders of Greek bonds had accepted losses on government debt.
However IMFs spending was criticized by countries like India and Brazil since a lesser amount was given for
rescue programs in Latin America and Asia.

IMF broke rules with 220bn Greek deals

A WAR of words broke out between the IMF and the EU over the bungled bailouts of Greece which totalled
almost 220billion. The IMF admitted to 'notable failures' in handling the Greek crisis and accused European
officials of being more concerned with saving the euro than rescuing the debt-ridden country. The IMF said it
was forced to break its own rules for providing financial assistance to Greece because EU leaders refused to
take action to solve the crisis.The scathing report stated that the catalogue of errors - including harsh austerity
measures inflicted on Greece - plunged the country deeper into crisis. Greece is in its sixth consecutive year of
recession, with unemployment at 27 per cent and youth unemployment at 62.5 per cent. The IMF said the
'dramatic contraction' in the Greek economy was driven by the refusal of European officials to consider writing
off the country's debts as early as 2010. The EU insisted that writing off Greek debt as suggested by the IMF
would have led to 'devastating consequences' as investors fretted about losses in other Eurozone countries.

TheIMFand David Cameron Express Reservations over Greek Deal.

The article cites the doubts expressed by IMF and the Great Britain on the fore coming
Greece bailout. It describes the three options proposed by IMF for the bailout, the
first two being explicit annual transfers to the Greek budget, and the third one is
giving Greece 30 years to settle the debt. It tells the reasons why the IMF is not going
to support the bailout in its present form. The article also suggests the reservations
expressed by David Cameron suggesting the fact that British taxpayers monies wont
be diverted towards bridging the Greek loan. It further goes on to describe the
opposition expressed by Syriza central committee towards the deal .Although it is very
rare for the IMF, David Cameron and Syriza radicals to agree on anything, yet the
opposition has led to a huge degree of doubt regarding the present form of the deal.

Conceptual Framework
Turmoil of
Great
Recession

Structural
weakness in
Greek
Economy

Sudden
crisis in
confidence
among
lenders

The Greek
Crisis

International
Monetary
Fund
Bailout 1

Bailout 2

Bailout 3

Research Purpose
Research Objective

The aim of this research is how IMFs

intervention affected Greeks economy
during their crisis.

Research Questions

Was IMF justified in bailing out Greece?

How does gender and/or pre-crisis expenditure affect

the post-crisis expenditure?

How has the aggregate expenditure changed after the

Greek crisis?

Research Strategy

Literature
Review

Collection of
Primary data
to gauge the effects
of the crisis on the
people of Greece

Collection
and processing
of secondary
data
to accept or reject
the tested hypothesis
in an attempt to
answer research
questions

Information Needs
Primary Data Collection

Type:

Survey

https://goo.gl/0lwToX

Secondary Data

Sigma Known

Sigma Unknown

Chi Square Test

Regression Data

Research Analysis

Thank you