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After many weeks of debate and over 12 hours of talks, the finance ministers of the Eurozone countries agreed to give Greece a 130 billion Euros (US $170 billion) second bailout on February 21, 2012. The loan was imperative to save Greece from a potentially disastrous default in March. The second bailout eventually became active in March 2012 when the terms of a debt restructure of all Greek government bonds were met. The second bailout plan intended to cover all of the nation's financial needs between 2012 and 2014 in the form of regular disbursements. It was estimated that with this bailout, Greece would resume using the private capital markets for debt refinance from 2015.

In mid-May 2012 the Greek Debt Crisis took an unpleasant turn as the country's inability to form a new coalition government after elections, led to much speculation that Greece would be forced to leave the Eurozone. In mid-June a second election was held and it led to the formation of a new government which promised to strictly abide by the terms and regulations of the bailout plan. The new government headed by Prime Minister Antonis Samaras went back to the creditors with a plea to grant the nation an extension of deadline from 2015 to 2017 due to a delay in the implementation of reforms and a worsened economic recession. In July 2012, the European Commission, the European Central Bank and the International Monetary Fund started to evaluate this request in the context of sustainability and trends in the Greek economy.

The Troika decided to withhold the scheduled August 2012 payout of €31.5 billion as it awaited the "surveillance report". From July to September 2012, the Greek government negotiated with the Troika over labor market reform & midterm fiscal plan 2013-16 to help put the bailout plan back on track. The Troika has shown a willingness to accept the plan for a third bailout loan.
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Last Updated on: October 1st, 2021