The Greece debt crisis explained in less than 100 words

What happens if the banks run out of money?

Hazel Sheffield
Monday 06 July 2015 16:27
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A woman holds the flag of Greece at the 'Greek solidarity festival' in Trafalgar Square, London. The event was held in support of the people of Greece and the cancellation of debt, ahead of their referendum
A woman holds the flag of Greece at the 'Greek solidarity festival' in Trafalgar Square, London. The event was held in support of the people of Greece and the cancellation of debt, ahead of their referendum

Greeks have voted in support of their prime minister Alexis Tsipras to shun the austerity proposals of Greece's European lenders.

Not sure what that means? Here's the Greece debt crisis in less than 100 words:

Greece owes European countries and international bodies €340bn borrowed over the past five years.

To afford the debt repayments, Greece made huge cuts leaving many impoverished.

In February, a fed-up population elected the left-wing Syriza party.

As Greece lagged on repayments, they were told to make more cuts, or lose aid. Syriza refused and asked the people whether they agreed in Sunday’s referendum. They did.

The big problem now is Greek banks are running out of money. If they do, Greece will have to start printing its own currency – the drachma - and drop out of the euro.

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