Exclusive: Lion Share of Greek Bailout Used to Pay Old Debts, Not Support Greek Budget, Study Finds
Less than 5 percent of the €215.9 billion ($249.57 billion) Greece received as part of its first two bailout programs actually went into state coffers, Handelsblatt has learned.
The rest was used to pay off old debts, make interest payments and to recapitalize Greek banks, according to a new study by the European School of Management and Technology that Handelsblatt has seen.
Only €9.7 billion of the total sum went into the government budget, while €86.9 billion was used to service debt and €52.3 billion to make interest payments.
A total of €37.3 billion in aid money was used to rescue Greek banks. Since the recapitalization program in 2013, Greek banks have lost about 98 percent of their market value.
“The aid packages were first and foremost used to rescue European banks,” ESMT President Jörg Rocholl told Handelsblatt. “The European taxpayers have bailed out the private investors,” he added.
Greece last year receved a third bailout program from the European Union and International Monetary Fund totaling nearly €90 billion.
Read the full story in Wednesday’s Handelsblatt Global Edition at 12:00 CET.
Picture: Greek Prime Minister Alexis Tsipras. Source: Picture Alliance