As Bailout Ends, Greece Still Faces Daunting Challenges

A statue of ancient greek philosopher Socrates faces the headquarters of the Bank of Greece, in Athens, on August 20, 2018. Greece emerged on Augsut 20, 2018 from its third and last bailout, although officials warn the country still has a "long way to go". Louisa Gouliamaki/AFP/Getty Images

ATHENS—Greece exits the last of its three bailouts on Aug. 20 and hopes to be able to borrow again in international markets after a nearly nine-year debt crisis that shrank the economy by a quarter and forced it to implement painful austerity measures.

The crisis has proven deeply traumatic for Greeks who had enthusiastically swapped drachmas for euros in 2001. Adoption of the single currency ushered in an era of cheap credit that funded a splurge in private consumption and public spending that sent Greece’s budget and current deficits ballooning.