Anatomy of a bailout

The cases so far

The cases so far

February 11th, 2010

EU leaders pledge to support Greece, thereby effectively abandoning the euro zone’s “no bailout” rule.

Greece

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On April 23rd, 2010, the Greek government requests an initial loan of €45 billion from the EU and the International Monetary Fund to cover its financial needs for the remainder of that year. On May 1st, the government announced a series of austerity measures to secure a three-year, €110 billion loan.

In February 2012 a second bailout package worth €130 billion is agreed, conditional on the implementation of another austerity package of €3.3 billion in 2012 and another €10 billion in 2013 and 2014.

Greeks go to the polls on Sunday week after an election in May failed to produce a government. Opinion polls suggest a similar result may emerge.

Ireland

On November 29th, 2010, Ireland became the second euro zone country to seek an EU-IMF bailout. In a complex arrangement, a €67.5 billion bailout was agreed, involving those institutions (the IMF’s Ajai Chopra, left, played a key part in the talks) and bilateral deals with three other, non-euro zone EU member states, the UK, Denmark and Sweden. Together with an additional €17.5 billion coming from Ireland’s reserves and pensions, the government received €85 billion, of which €34 billion was used to support the country’s ailing financial sector.

Portugal

On May 16th, 2011, euro zone leaders officially approved a €78 billion package for Portugal, the third euro zone country to be bailed out.

Spain

Euro zone leaders will discuss Spain’s crisis today. A bailout is expected.