Here’s what you need to know about the Greek debt crisis

Staff

10 years ago

A protester waves a Greek flag during an anti-austerity rally in Athens, Greece, June 29, 2015. Stunned Greeks faced shuttered banks, long supermarkets lines and overwhelming uncertainty on Monday as a breakdown in talks between Athens and its international creditors plunged the country deep into crisis. REUTERS/Yannis Behrakis TPX IMAGES OF THE DAY

Demonstrators gather to protest against the European Central Bank’s handling of Greece’s debt repayments, in Trafalgar Square in London, Britain June 29, 2015. Stunned Greeks faced shuttered banks, long supermarkets lines and overwhelming uncertainty on Monday as a breakdown in talks between Athens and its international creditors plunged the country deep into crisis. (REUTERS/Neil Hall)

Demonstrators gather to protest against the European Central Bank’s handling of Greece’s debt repayments, in Trafalgar Square in London, Britain, June 29, 2015. Stunned Greeks faced shuttered banks, long supermarkets lines and overwhelming uncertainty on Monday as a breakdown in talks between Athens and its international creditors plunged the country deep into crisis. (REUTERS/Neil Hall)

Demonstrators gather to protest against the European Central Bank’s handling of Greece’s debt repayments in Trafalgar Square in London, Britain June 29, 2015. Stunned Greeks faced shuttered banks, long supermarkets lines and overwhelming uncertainty on Monday as a breakdown in talks between Athens and its international creditors plunged the country deep into crisis. (REUTERS/Neil Hall)

German Chancellor Angela Merkel speaks with Finance Minister Wolfgang Schaeuble (L) next to Transport Minister Alexander Dobrindt during a parliamentary debate on the Greek debt crisis at the German lower house of parliament Bundestag in Berlin, Germany, July 1, 2015. (REUTERS/Fabrizio Bensch)

German Chancellor Angela Merkel speaks with Finance Minister Wolfgang Schaeuble during a parliamentary debate on the Greek debt crisis at the German lower house of parliament Bundestag in Berlin, Germany, July 1, 2015. (REUTERS/Fabrizio Bensch)

If you’re just catching up to it, here are the latest developments — and what you need to know — about the Greek debt crisis.

1) Central bankers are getting ready to take action to contain the shock waves if Greece has to abandon the euro.

2) Remarkable series of announcements from the Greek Prime Minister Alexis Tsipras Wednesday: First, he said he was suddenly ready to accept most of the terms of a bailout he’s been aggressively campaigning against. Then, hours later, he urged Greeks to say “no” to them in a popular vote set for Sunday.

3) European leaders say there’s still hope for a fix for the Greek crisis, if there is a “yes” vote in the referendum. But until that vote on Sunday, they said they planned no further discussions.

4) A “no” is likely to hasten Greece’s exit from the eurozone. Chaos would ensue as proceedings would likely begin on how to return to the drachma.

5) A “yes” vote is likely to lead to new negotiations. But Greece may need to choose a new government first. Finance Minister Yanis Varoufakis told CNN he would resign if the vote goes that way; Tsipras has hinted he’ll quit too.

6) Even if there are more talks, there’s no easy way out for Greece. It would take weeks to negotiate a new rescue.

7) Europe wants Greece to cut the amount it spends on pensions and raise additional taxes. It may demand even greater sacrifices in return for more help.

8) Greece officially missed its $1.7 billion payment to the International Monetary Fund on Tuesday. It’s the first developed country to do so. Greece has been living on borrowed money for a while now, and time has run out.

9) The IMF said Greece now needs at least 50 billion euros, and will have to be given more time to repay its debts. That’s partly because of the damage Tsipras has done to the economy.

10) Greek banks are still closed. That’s to stop people from withdrawing all their cash, which the banks couldn’t possibly honor. Daily withdrawals are limited to 60 euros, or about $67.

11) Every day the banks stay shut, Greece economy suffers. And the country is already reeling from six years of recession. The economy has dropped by a quarter, and unemployment stands above 25%.