History of Greece's Debt Crisis and the banking policy, The Greek Debt Crisis in Quest of Growth in Times of Austerity

Greece started since its foundation, as a state, with a bankruptcy. The first official act of the new state in 1827 was the default statement. Overall, Greece bankrupted four times and was under receivership for over 50 years across its historic route. The second official bankruptcy was in 1893, and then the first financial control was imposed on Greece with tragic consequences for the economy and the social cohesion. The second official bankruptcy was declared and became known by the phrase “unfortunately we bankrupted” by Ch. Trikoupis in 1893. There were then foreign lenders who, in 1898, after the Greek-Turkish War of 1897, imposed the International Financial Control and committed the basic resources of the Greek public. The International Auditing was maintained for many years and in 1932, for the third time, Greece was driven into bankruptcy. Finally, the fourth bankruptcy starts from the years from 2010 to 2012. In the run-up to all four debt crisis episodes, Greece lost access to external borrowing and faced “lack of trust” which means that foreign investors do not have any confidence in the underlying soundness of the country’s monetary and fiscal institutions. The primary default of 1826 spread over an amazing 54 years, while the third default of 1932 was settled just 30 years afterward (in 1964). In addition, the fourth obligation emergency which began in 2010 is still exceptionally a long way from being settled. What clarifies these long deferrals in crisis determination in Greece? The reasons are obviously complex, including extended subsidences and also political.