The latest chapter in Europe’s never-ending sovereign debt crisis comes about a year after Greece received a 110 billion euro ($158 billion) bailout package from the EU and IMF. That bailout was supposed to buy time for Greece to adopt austerity measures without having to tap the public debt markets.
Lets take a look at exactly where funding is coming from for the various PIIGs bailouts.
The total €865 billion ($1.2 trillion) pot available for euro-area rescues is rather enormous. (Whether it will be sufficient to cope with Greece, Ireland and Portugal’s needs is yet to be determined).
The sources of all that cash include the European Financial Stability Facility, (€440 billion) primarily funded by Germany, France and Italy. The IMF can kick in up to €280 billion. America has also suggested she will lend €50 billion.
Source: The Economist