NEW YORK TIMES: …Much of the previous bailout funds have gone to pay off Greek bonds held by private investors and other eurozone governments, rather than stoke growth. Within Greece, the money was supposed to help replenish banks’ capital, to get them lending to revive the moribund economy. Instead, it sat in banks’ coffers as bad debts piled up, and it bought time for Greeks and foreign investors to get their money out…
Since 2010 other eurozone countries and the International Monetary Fund have given Greece about €230 billion in bailout funds. In addition, the European Central Bank has lent about €130 billion to Greek banks.
The latest financial aid package is following a similar pattern to the previous ones. Only a fraction of the money, should Greece get it, will go toward healing the economy. Nearly 90 percent would go toward debts, interest and supporting Greece’s ailing banks… (more)
