Yesterday, the Greek government passed a referendum of its people, rejecting new terms of debt offered by Europe and the International Monetary Fund (IMF). Greece has gone bankrupt for failing to pay debts of about Rp 22 trillion to the IMF on 30 June 2015 ago.
For years, Greece has been living in recession and budget tightening. But through a new government leader Prime Minister Alexis Tsipras wants to stop the savings demanded by his creditors.
After refusing the terms of debt, of course Greece will not get fresh funds from Europe and the IMF. If this condition continues, Greece will get worse. Banks will start to run out of money, retirees get no money, and the unemployment rate that now reaches 25% will get worse.
What is the root of the Greek problem?
The answer is obviously about debt. Greece is already in debt. In fact, Greece is not a big country, because the population is only about 11 million people, this is even lower than the population in West Java which reaches about 46 million people. About 16% of Greece's economy depends on the tourism sector.
With so much Greek debt, investors stopped buying bonds issued by the government of the gods.
As is known, all healthy countries, seeking debt by selling bonds or bonds to investors. This debt is withdrawn to make the country stronger, using debt to build better transportation, infrastructure, and education. The United States (US) became one of the countries with the most debt, but the country is large-scale economy, and can pay its debts.
A country gets into trouble when it owes much larger than its economic size. This is what happened with Greece.
Since when did the Greek debt crisis begin?
It is a debate to this day, where the Greek debt is run. Like many countries in Europe, Greece is not in a debt crisis until the world economic crisis hit in 2007/2008 and then, this kriris spread all over the world.
As economic conditions worsen, governments in many countries pour a lot of money to move the economy. This policy is to fill money into community offices, and pay social security for vulnerable people entering the poor category. But it also makes government debt swell.
Many countries can still survive and not drown. Some countries in Europe are almost lost in crisis, but Greece is the worst.
When was Greece's first rescue injection?
In 2010, leaders in Europe, along with the International Monetary Fund (IMF), gave hundreds of billions of euros to Greece, and several other countries in order to repay debts due.
But the injection of funds provided by Europe and the IMF on condition. Countries that crisis can be fresh funds, and these are exchanged for budget cuts and make their economies more efficient.
Greece is also forced to cut civil servant salaries, raise taxes, freeze new pension budgets, and ban premature retirement. Many economists have warned that the austerity is making Greece worse off, while others say Greece has no choice.
Indeed, Greece managed to reduce the amount of debt, but this country can not menyicil injections of funds from Europe and the IMF and also has not reformed its economy like other countries. Angagran savings make this country's economy suffer.
Last January, the election has won the Syriza party which promised to stop the budget savings. Syriza, led by Alexis Tsipras, was elected Prime Minister.
Tsipras knew then, the maturing debt would come soon, but Greece had no money to pay for it. Tsipras needs to negotiate with Europe to pay its debt through new debt.
But Tsipras takes the hard way, he wants to get the debt and the release of the austerity budget. This is a risky bluff. The lenders were unmoved, and last week or exactly 30 June 2015, Greece failed to pay its debt to the IMF. Greece was the first developed country to default on debt.
What is the choice of Greece now?
Tidan many choices of Greek. The country's debt is still large, and its economy is getting worse each year. Banking in this country is almost running out of money.
Because Greece uses the euro currency, along with 19 other countries, Greece does not have a headache thinking about the value of its currency. If Greece dares to leave the euro and switch to its old currency, the drachma, there will be a devaluation. That is, the value of money will be lower.
What happens next?
Nothing good. The results of a referendum that rejected new debt conditions, making Greece threatened 'kicked' from the list of countries using the currency of euros or eurozone. Greece can again use drachma.
When this is done, then the value of public money will go down. Prices will rise instantly, and the cost of living becomes more expensive. While the debt is still a lot and there is no money to pay. Economy will be devastated.