Abstract

Greek crisis threatened the stability of the euro area and floated the idea of a Greek exit from the economic zone after the sovereign debt crisis hit the Greek economy in 2010, as the Greek government asked the European Union and the International Monetary Fund to provide loans to help Greece to avoid the risk of bankruptcies and defaults. And after the increased interest rates on Greek bonds to high levels as a result of fears among investors of Greece's inability to meet their debts, especially after the high rate of budget deficits and mounting public debt to Europe and the International Monetary Fund have decided to provide assistance to Greece for its implementation of economic reforms and austerity measures aimed at reducing the budget deficit.