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Rebooting the Greek Financial Crisis

Today we had the amazing opportunity to visit the National Bank of Greece. We learned so much information about the history of the library, the Greek Financial Crisis, how Covid-19 has affected the economy, and so much more. The history of the bank library was exceptionally interesting because it started its operation on May 14, 1928, almost one hundred years ago. The library’s main mission is to provide and ensure appropriate information sources to support the functions and research activities of the Bank of Greece. After learning about the library, we had the chance to sit in and listen to Dr. Marianthi Anastatou, an economic analyst for the Bank of Greece. She explained how Greece is rebooting its economy after the Covid-19 Pandemic. The Greek Crisis was a result of an accumulation of large macro imbalances. The growth model was based on consumption and borrowed money unsustainably for the long run. Greece received loans of $330 billion dollars and of these loans approximately 86% of them were from the European Union. Twin deficits were eliminated, cost competitiveness was restored, and reforms have made the economy more flexible. The socioeconomic costs were high. In 2013, the public debt ratio increased sharply. In the last 2 years, since Covid, the Greek economy has entered the current era of uncertainty with much stronger fundamentals than a decade ago. Trade links are not strong and about 30% of these are with Russia alone. Despite all of these faults, there is strong momentum to support an increase in growth in the year 2022. The image shows the GDP and how it has fallen and increased in the last 10 years.