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Where did the Greek Bailout Money go?

Rocholl, Jörg, Stahmer, Axel, (2016), “Where did the Greek Bailout Money go?”, European School of Management and Technology, December

This paper analyzes the flow of money for the different Greek bailout funds and concentrates on two key questions. First, where did the money come from? Second, where did the money go to? Finally, the paper discusses the findings in a broader context and derives policy implications. Figure 1 presents the main results and exhibits that only €9.7 billion or less than 5% of the total amount of €215.9 billion being distributed in the 1st and 2nd programme were not used for debt-related payments and bank recapitalizations and thus directly contributed to the Greek fiscal budget. In contrast, €139.2 billion1 or more than 64% were used to repay the existing debt and serve interest payments. Furthermore, €37.3 billion or 17% were used to recapitalize Greek banks, while the remaining €29.7 billion or 14% provided incentives for investors to engage in the Private Sector Involvement (PSI) in March 2012.

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