In 2009, Greece was on the brink of economic catastrophe. The troika is a slang term for the three organizations that had the most power over Greece’s financial future within the European Union during the economic crisis. The three groups that make up the troika in this context are the European Commission (EC), the International Monetary Fund (IMF) and the European Central Bank (ECB).
Financial crisis
While Greece screeched until the end of 2011 with troika approval for rescue packages, things got tough during the dual elections. While many observers felt that the worst of the crisis was passing, Greek leaders called for additional “Greek cuts” on existing loans. In this context, the term ‘haircut’ refers to the amount of cuts or cuts in Greek debt that debtor banks and others agreed to accept in order to alleviate the Greek financial crisis and prevent or ease other financial problems for the troubled European Union. .
The power of the troika peaked in 2012, when it seemed possible that Greece could still exit the European Union, but they remain a powerful presence making many decisions that affect Greece’s financial situation.
Financial rescue 2016
In June 2016, the European authorities gave 7.5 billion euros (approximately 8.4 billion dollars) in rescue funds to Greece to allow it to continue paying its debts. The funds were awarded in “recognition of the Greek government’s commitment to carry out essential reforms,” according to a statement from the European Stability Mechanism. At the time the funding was announced, the ESM said that Greece had passed legislation to reform its pension and income tax systems and had undertaken other specific goals towards economic recovery and stability.
Origins of the word ‘troika’
Although the word troika may evoke the image of ancient Troy, it is not drawn directly from the Greek language. The modern word has its roots in Russian, where it means a triad or three of a kind. It was originally referring to a type of sleigh pulled by three horses (think of Lara’s starting scene from the film version of “Doctor Zhivago”), so a troika can be anything or any situation that involves or depends on how well it works. of three separate parts. In its current use, the word troika is synonymous with triumvirate, which also means a committee of three people who oversee or have power over an issue or organization, usually a group of three people.
The Russian word may have been derived from trokhos , a Greek word for wheel. The troika is generally mentioned in lower case, except in some article titles, and is often used with “the”.
Do not confuse the word troika with the term tranche , which refers to different sections of funds of a loan to be released. The troika could comment on a section, but they are not the same. You will see both terms in news articles about the Greek financial crisis.
