Greece has been granted a reprieve by eurozone finance ministers and the International Monetary Fund after they agreed on 27 November to significantly reduce the country’s debt, which had amounted to billions of euros.
The agreement follows weeks of discussions between international leaders, including German Chancellor Angela Merkel, and involves managing Greek debt by acquiring over 40 billion euros.
The real extent of the Greek debt challenges first made international headlines in 2009. Since then, the economy has changed by 25 percent in five years. Interest rates on official loans being made smaller, writing off certain loans altogether and extending maturity on other loan types by an additional 30 years are all part of the agreed strategy to reduce Greek debt.
Speaking to reporters in Athens on Tuesday morning, Greek Prime Minister Antonis Samaras said: ‘Tomorrow, a new day starts for all Greeks.’
The country aims to reach primary budget surplus — where state income is higher than spending with the exception of interest payments on outstanding debts — as soon as 2016. Experts predict that the country’s debt might be changed from an estimated 144 percent to below 110 percent by 2022.