2010, the Greek government deficit was again revised and estimated to be 13.6% which was one of the highest in the world relative to GDP and public debt was forecast, according to some estimates, to hit 120% of GDP during 2010, one of the highest rates in the world.
As a consequence, there was a crisis in international confidence in Greece's ability to repay its sovereign debt. In order to avert such a default, in May 2010 the other Eurozone countries, and the IMF, agreed to a rescue package which involved giving Greece an immediate €45 billion in loans, with more funds to follow, totaling €110 billion. In order to secure the funding, Greece was required to adopt harsh austerity measures to bring its deficit under control.
On 15 November 2010 the EU's statistics body Eurostat revised the public finance and debt figure for Greece following an excessive deficit procedure methodological mission in Athens, and put Greece's 2009 government deficit at 15.4% of GDP and public debt at 126.8% of GDP making it the biggest deficit (as a percentage of GDP) amongst the EU member nations (although some have speculated that Ireland's in 2010 may prove to be worse).
In 2011 it became apparent that the bail-out would be insufficient and a second bail-out amounting to €130 billion ($173 billion) was agreed in 2012, subject to strict conditions, including financial reforms and further austerity measures. As part of the deal, there was to be a 53% reduction in the Greek debt burden to private creditors and any profits made by eurozone central banks on their holdings of Greek debt are to be repatriated back to Greece. A team of monitors will be based in Athens to ensure agreed reforms are put into place and three months worth of debt repayments are to be held in a special account.
An inconclusive election on 6 May 2012 has resulted in a power struggle between parties willing to accept austerity measures, and those that reject them. The political