Negotiations stall between Greece and its private creditors over a debt write-off deal, a necessary condition if the country is to receive bailout funds. Talks later resume.
Greece’s coalition government agrees to pass austerity measures required by international lenders in order to qualify for an additional €130 billion ($167 billion) in bailout funds.
The European Central Bank (ECB) carries out a second long-term refinancing program, which allows European banks to access inexpensive three-year loans to refinance maturing debt. This is in addition to nearly €500 billion ($641 billion) the ECB lent to banks in late December 2011.
Greece’s €130 billion bailout receives euro zone and International Monetary Fund (IMF) backing.
25 euro zone members sign a new fiscal discipline agreement imposing deficit caps. The United Kingdom and Czech Republic opt out of the agreement.
Euro zone finance ministers announce an expansion of the area’s rescue funds: the European Financial Stability Facility and European Stability Mechanism.
Spain makes financial headlines as its borrowing costs top 6 percent on investor concerns about the country’s fiscal position.
The majority of Greeks voting in a general election support parties that were against the country’s existing bailout agreement with the European Union (EU) and the IMF.
Greece announces new elections in June after failed attempts to form a coalition government.
Spain announces that it will formally request up to €100 billion ($128 billion) in loans from the euro zone to shore up its ailing banks.
Cyprus becomes the fifth euro zone country to formally request an international bailout.
Spain’s borrowing costs rise to the highest rate since the launch of the euro in 1999.
Greek elections result in the pro-austerity party New Democracy garnering the most votes. This development helps allay fears that Greece will leave the euro zone.
Italian bond yields continue rising on concerns about the economy’s long-term growth prospects, debt levels, and political instability.
Spain’s borrowing costs rise again to crisis levels, reaching 7 percent.
ECB President Mario Draghi pledges to do “whatever it takes” to preserve the euro.
Deposit flight from Spain’s banks hits a 15-year high on growing concerns about the health of Spain’s banking system.
The ECB announces a bond-buying program—Outright Monetary Transactions—under which the central bank will buy unlimited amounts of sovereign debt from ailing euro zone countries that have first signed up with one of the EU’s formal rescue programs and agree to tighter fiscal controls.
The ECB announces that it will take over the supervision of the euro zone’s 6,000 banks.
Greece’s official creditors agree to cut the country’s debt by €40 billion ($51 billion), plus the country gets an additional two years to meet its fiscal target. The deal clears the way for the next installment of aid loans to Greece.
Political turbulence erupts in Italy upon the resignation of Prime Minister Mario Monti and raises concern of spillover effects in Spain.
Greece receives €34.4 billion ($44 billion) in bailout funds.