Timeline Greek Debt

1981
Greece becomes a member of the European Union

2001
Greece becomes a member of the European Monetary Union (EMU)
Goldman Sachs sold a derivatives scheme to Greece, which enabled it to enter the EMU and which nearly doubled the nation’s debt by 2005. (Ellen Brown)

2007
Financial crisis => a substantial increase in sovereign debt took place all over the world in the aftermath of this crisis; sovereign debt was a way for the private financial sector to pass the costs of the crisis of 2007 onto the public sectors across the world. (source: Greek debt audit)

2008
Bank-induced credit crisis; the ECB coerced Greece to bail out its insolvent private banks, throwing the country itself into bankruptcy (Ellen Brown)

2001-2009
Credits to private households increased sevenfold
Credits to private enterprise increased fourfold
Public debt increased by 20 percent

2009
Economic crisis in Greece in the context of the global financial crisis: After the Parliamentary Elections of 2009, the newly elected government of G. Papandreou illegally increased the public deficit and debt for the period before the memorandum of 2010. European authorities collaborated with the new government in the falsisfication of statistical data resulting in a more dramatic picture of the budget and public debt situation. This was done in order to convince public opinion in Greece and Europe to support the bail-out of the Greek economy in 2010.

2010
First “rescue package” of €110 billion; it was designed to rescue the private creditors of the country, in particular the banks, and not the Greek people. The conditionality of the loan had catastrophic consequences for the Greek people and economy: crisis in education and health; increase in homelessness, poverty, suicide rate, and public debt; collapse of the economy. Through the “rescue package” the private credit crisis was transformed into a crisis of public debt. Banks having made risky loans were bailed out and the Greek people were designated as the victims having to pay the costs.

People say Greece has been bailed out (…). In reality, I think, it was the bailout of the private creditors of Greece (…) many important banks, European banks, other banks had a large exposure in countries like Greece and what happened was that the large amount of resources lent by the Fund [IMF] and even more by the European official sector allowed these private creditors (…) to exit from their exposure at par, no discount, without making concessions (…) Greece was forced on a major adjustment program at a high social cost and the debt was transferred from the hands of the private creditors to the official sector. (Source: Paulo Nogueira Batista interviewed by Harald Schumann)

2012
Second “rescue package” of €130 billion + €107 billion debt relief of private creditors

2015 June
Preliminary report of the Truth Commission on Public Debt: “All the evidence we present in this report shows that Greece not only does not have the ability to pay this debt, but also should not pay this debt first and foremost because the debt emerging from the Troika’s arrangements is a direct infringement on the fundamental human rights of the residents of Greece. Hence, we came to the conclusion that Greece should not pay this debt because it is illegal, illegitimate, and odious.”

2015 July 5
In a plebiscite the Greek voters reject an agreement with the creditors to continue austerity.

2015 July
Despite the clear rejection of austerity in the plebiscite of July 5 the Greek government under Prime Minister Alexis Tsipras agrees to a third “rescue package” that will release €86 billion of funds, much of it to repay debts related to the two previous deals. The disbursement of funds is linked to progress in delivery of harsh policy conditions, imposed by the creditors, which will extend and deepen austerity.

2010-2015
Economy in recession; austerity policies of the creditors violate social rights of the Greek people; creditors ignore human rights instead of protecting them as is their obligation according to the law.

The Greek government was thus broken Mafia-style at the knees, until it was forced to abandon its national sovereignty and watch its public treasures sold off piece by piece. Suspicious minds might infer that this was a calculated plot designed from the beginning to throw Greece’s prized assets onto the auction block, a hostile takeover and asset stripping for the benefit of those well-heeled entities in a position to purchase them, including the very banks, hedge funds and speculators instrumental in driving up Greek debt and destroying the economy. (Ellen Brown. The Greek Coup: Liquidity as a Weapon of Coercion)