Macroeconomic aspect- Debt crisis

Greek-government debt crisis has long been a tough challenge for the Greek government in economic recovery. Even though, on the 20 February 2015, the Greek government reached an agreement with its creditors in Eurogroup to extend its support program by four months, it does not mean that all of the problems faced by the Greek government have been sorted out. A wide range of issues, such as the discussion on debt sustainability and the need of a third rescue program between Greece and its Eurozone partners , the policy of how the Greek government and domestic banks will fund themselves over the coming months, and even the maintenance of political support from the Greeks to the government, are still great barriers ahead of them. So what triggered this catastrophic incident? 

Five main causes, which were highlighted in Stability and Growth Program 2010 by the Greek Ministry of Finance, had shown part of the story about the significantly deteriorated economy. They are low GDP growth rate, high public spending causing huge fiscal imbalances, high government debt level, budget incompliance together with statistical incredibility. In late 2009, due to the soaring government debt level along with high structural deficits, fears of a sovereign debt crisis broke out and the investors began concerning Greek government's ability to meet its debt obligations. In April 2010, the national account data revealed the Greek economy had also been hit by three distinct recessions. Such negative news triggered crediting rating agencies to downgrade Greek government debt to junk bond status, creating alarm in financial market and gave rise to Greek government debt crisis. In the following years, the Eurozone countries, European Central Bank (ECB) and International Monetary Fund (IMF), launched bailout loan to rescue Greece conditionally. 

Indeed, in addition to the aforementioned causes, tax evasion and officer corruption also add fuel to the worsening situation. In 2010, the estimated tax evasion costs for the Greek government amounted to well over $20 billion per year. The latest figures from 2013, also show that the State only collected less than half of the revenues due 2012, with the remaining tax owings being accepted to be paid by a delayed payment schedule. It is mainly due to the high percentage of self-employment in Greece.
A list of reform measures has been prepared and presented on 23 February. It is no doubt that the agreement reached by the Greek government and ‘Troika’ is the first step for achieving a more enduring arrangement. Whether Greece will get it through is still an unknown. How it will go on depends on the approval of the Eurogroup to the measures.
Credits to:
FXSTREET: Is Friday’s deal now the end of the Greek crisis? – ING
The Wall Street Journal: Greek Deal: ‘Tough Negotiations and Brinkmanship Will Be Back’ — Strategists
Wikipedia- Greek government-debt crisis