Looking at the data, it's curious how Greece managed to continually borrow and spend money in the amounts that it did without significant increases in the interest rates it was charged or increased concerns over its ability to repay its obligations.
Notice that despite the dramatic increases in public sector spending, and the liabilities incurred from the "securities other than shares" on its balance sheet, its interest (shown in red) remained more or less the same. How did Greece pull off such financial magic? By entering into transactions with other financial institutions (specifically American ones) that utilized instruments that wouldn't appear as loans or short term securities on its balance sheet. In The New York Times articles titled, "Wall St. Helped To Mask Debt Fueling Europe's Crisis" and "Banks Bet Greece Defaults On Debt They Helped Hide" several of these transaction types are described in detail; all were designed to allow Greece to access new capital while sheltering its debts away from European regulators. These instruments allowed Greece to hide billions of Euros of debt until, of course, they had borrowed more than their economy could chew and had to ask their central banker for money.
Continued in Part 4