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Greece Will Try To Raise Another €1.5 Billion In Bills Next Week As Ultra Short-Term Funding Market Becomes Last And Only Recourse
Greece will try to raise another €1.5 billion in 13-Week Bills on Tuesday, April 20, the same day that the country sees a major €8.22 billion maturity, according to the Greek Public Debt Management Agency as reported by Market News. Greece is now stuck in the vicious cycle which results from a massively steep near-term, followed by an inverted curve - it needs to raise debt more and more often as nobody will buy anything longer term, and certainly nothing past the 3 Year maturity cliff that marks the end of the EU/IMF's guaranteed commitments. The Bill issuance will replace the Dollar-denominated bond issuance that was supposed to be syndicated by Morgan Stanley and which is now DOA."I am not sure if we are going to issue dollar-denominated bonds
after (the US roadshow)...," PDMA Chief Petros Christodoulou was quoted
as saying in an interview with Japan's Jiji news agency published
Friday. Greece is now effectively a Lehman Brothers, whose busted balance sheet is entirely dependent on the "discount window" of the IMF's benevolence. Should there be a hiccup in ultra-short term debt availability, the country will default overnight.
Market News reports:
Strategists now see the PDMA increasing its share of short-term T-Bill sales this year, after yield on bill rates fell after EMU finance ministers agreed Sunday to a contingency 3-year plan for Greece that would provide loans -- if requested by the Greek government -- of up to E30 billion in the first year of the program, with more funding available in subsequent years. The International Monetary Fund would kick in an additional E10 billion to E15 billion in the first year.
This effectively takes care of this years remaining funding requirement and lessens the change of default this year, say strategists.
Moreover, given that this week's 26-week and 52-week T-Bill sales were so successful, with the debt agency selling E1.56bln combined -- more than the E1.2bln originally indicated, with 26-week T-Bill covered 7.67 times and the 52-week maturity covered 6.54 times -- short-term T-Bill issuance is likely to become the debt agency's favoured funding method.
The 13-week T-Bill sale come ahead of the heavy slew of redemptions payments that Athens needs to fund, which includes E1.28 billion in T-bill redemptions on Apr 16, E8.22 billion in bond redemptions on Apr 20 and E1.585 billion in T-bill redemptions on Apr 23.
In addition, Greece also faces a E2.278 billion coupon payment on May 10 and E8.086 billion in bond redemptions on May 19. The PDMA debt chief has already hinted that April's funding needs are taken care of, but that the country needs to raise E11.6 billion by May.
Greece has so far raised around E25.0 billion so far this year out of the E54.0 billion funding target, according to Market News International calculations.
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This is like a really bad "B" horror movie where the bad guy gets shot, falls down and doesn't move, only to spring back up when everyone thinks they're safe.
Only this is the 6th time he's jumped back up and even the audience is ready to kill the SOB, if for no other reason that to move the story forward. Enough already.
+1
Well said.
Great analogy.
As in the Grecian scenario, I am easily annoyed by the petty, sniveling characters in sci-fi disaster movies, so I wind up pulling for the asteroid, the volcano or the alien virus.
Freddy Kreuger.
They should just have a big bake sale and car wash. That should get them to their goal.
Roll roll roll your debt,
Create an income stream,
Merrily, merrily, merrily, merrily,
Life's a Ponzi scheme.
LOL
MsCreant, I thought you taught at a higher grade level than kindergarten? :>)
I must confuse your lyrics were wonderful. I instantly supplied the background music in my head as I read the words. Brilliant.
Thanks for that earworm.
MsCreant-
6:45am on the West coast... I've still got boogers in my eyes, and I'm already laughing.
Thanks! Hilarious!
Really funny Ms - LOL
Main opposition New Democracy (ND) is opposed to a Greek recourse to the
International Monetary Fund (IMF), party spokesman Panos Panayiotopoulos
reiterated on Friday morning, and stressed that the country, with a new policy
mix, must make it on its own.
"The government appears to be leading the country towards the International
Monetary Fund. New Democracy considers it imperative to repeat, once again, our
stated conviction that we need to show confidence in the strengths of the Greek
people and proceed with a new mix of economic policy in order to make it on our
own. And, primarily, without new onerous conditions, which the IMF is sure to
demand and which will have catalytic repercussions on the Greek society," the
ND press spokesman said.
No IMF? Default bitch default
The final destination of failed Keynesian economics is sovereign default, civil disorder, and likely war. IMF loans are a death knell for any country. In the end, its money for blood. That's how far society has fallen. It will get interesting as other eurozone countries funding needs start to overlap. A Euro break-up is not only likely, but inevitable.
I think it will be startling how quickly the rest of the PIIS will unwind if a default happens.
Appropriate that this is the EUs choice between Scylla and Charybdis. Bail them out and commit political suicide.
Don't bail them out, and your banks take a huge hit.
Let the IMF bail them out, commit political suicide in both the US and Greece.
Kudos to MsCreant!
I am a columnist for an internationally distributed fortnightly and am including your marvelous verse in an essay to be published in June with attribution to you and to ZH, an increasingly valuable resource in a world gone genuinely mad.
The essay likely to follow is entitled "Greece-ing the Skids," because in life's little game of chutes and ladders, most all of us are on the way down.
As a postscript, I add that I live in Argentina, and soon we'll be able to sing "We Are the World," as I fear many are soon to discover.
Wow, 17 mins and no ZH squid article yet!
DEFAULT and CRASH ....quick man ... i m tired of this nonsense...i want to make some money ...