EXECUTIVE SUMMARY: Greece is now facing the end of the eight-year bailout and an unexpected diplomatic crisis with Russia. While PM Alexis Tsipras is trying to take credit for the former and manage the latter, his government may pay a price in voter discontent.
Greece reached an important milestone on August 20. The eight-year bailout programs, through which Greece received €320 billion from the “Troika” (the EU, the European Central Bank, and the IMF), came to an end. Greece will no longer receive bailout loans. Nor will its creditors be able to dictate new terms, as they did in the various despised Memoranda that Greece was forced to sign.
The bailout schemes started in 2010 as the economic crisis in Greece worsened. The huge and unprecedented loans were intended to rescue the country and prevent an economic collapse of Greece and possibly of the entire European economy.