Troica Report: Next Aid Disbursement Can Not Take Place Until Greece Corrects Underfinancing In Adjustment Program

Tyler Durden's picture

Reuters has obtained an advance peek at the crucial Troica report whose findings will determine Greece's fate, and according to Andreas Rinke the conclusion is not very palatable: "The EU, ECB and IMF mission to Greece said in a report obtained by Reuters on Wednesday that the next disbursement of Greek aid could not take place until it corrected the under-financing in its adjustment program." More from Reuters: "The long-awaited report by the so-called "troika" said Greece risked missing its deficit targets without further consolidation measures and that its recession appeared to be longer and deeper than initially expected. "The financing strategy needs to be revised. Given the remoteness of Greece returning to funding markets in 2012, the adjustment program is now under financed," it said. "The next disbursement cannot take place before this under financing is resolved." The troika said a privatization agency with an independent board, to which the European Commission and euro zone member countries could nominate members, would be set up shortly." We fail to see how the Troica can be satisfied by Greek economic data in the next month or so when Greece is expected to run out of money. Hopefully there is more to this because otherwise this ia very unpleasant conclusion for the insolvent country.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
knukles's picture

Me too.
Just wonder what the fuck is an "under-financing in an adjustment program"?

No wonder there's confusion.


the not so mighty maximiza's picture

So in other words, get a haircut and get a real job.

topcallingtroll's picture

Amazing that the greeks pulled off this con for so long isnt it?

Why didnt the socialists just stay quiet about it? All the politicians from both sides knew the books were cooked. Why did they suddenly " discover" the fraud? Why not stay on easy street a few more years?

forexskin's picture

gotta let the fish run before its possible to reel it in.


ready to plunder greece - just about..... now

Urban Redneck's picture

They could just do what California does (since it doesn't have a printing press of its own either) and issue IOUs instead of EUROs for all domestic State payments.

NoClueSneaker's picture

Nope, get a devastation "Treuhand" - art , hand out everything and get lost ...

And do some BJ to the generous EU....


Tortfeasor's picture

So Greece will be privatized, via an "independent board".  Fantastic.  That will go over well.

Orly's picture

I don't understand why all of theses news isn't having the Euro jump around like a cat tied to a stick.  Everything has been eerily calm for the whole trading week.

Things that make you go Hmmmmmmmm, indeed.

jtmo3's picture

As oppsed to what is going on in the markets in the US? Where is there sanity if the financial markets at the moment. How anyone could feel safe and positive about investing ANY money in any major market around the world right now, is beyond me. There is no stabilty (via manipulation) at all, anywhere, as far as I can tell.

Orly's picture

Exactly.  This whole thing reeks of the market's behaviour in January when there would be some amazing announcement like the Chinese and Japanese are selling dollars and buy Euros whenever there was a major sell signal in the Euro.

Incredible.  At least I can time my major announcements now!  Ha!

scratch_and_sniff's picture

Its just the convoluted nature of the situation Orly, there is nothing binary going on with the euro, its melting my face. There were some positives in the report not mentioned here, such as greece meeting its Q1 criteria, and mentioning that Greece has "made progress reducing imbalances", sees borrowing at 3.4% of GDP in 2014 etc. That said, its still a train wreck, put it down to crisis fatigue and stick a sneaky long on.

Orly's picture

Hmm.  A sneaky long, eh?  I was kind of thinking the same thing with the AUDUSD (which trades more like the EURUSD than the EURUSD lately...) because it hasn't double-topped as it is wont to do, at about 110.

Maybe.  What the hell?  Anything else been right lately?  No.  May as well just guess!

Thanks, SnS.

redpill's picture

This will not end well.

Dismal Scientist's picture

'...The Greeks gathering in Syntagma Square seem to need no culture shock to reject their Socialist government’s cave-in to European bankers. Interest-bearing debt is the “product” that banks sell, after all. What seemed at first blush to be “wealth creation” was more accurately debt-creation, in which banks took no responsibility for the ability to pay. The resulting crash led the financial sector to suddenly believe that it did love centralized government control after all – to the extent of demanding public-sector bailouts that would reduce indebted economies to a generation of fiscal debt peonage and the resulting economic shrinkage.

No doubt the post-Soviet countries are watching, along with Latin American, African and other sovereign debtors whose growth has been stunted by predatory austerity programs imposed by IMF, World Bank and EU neoliberals in recent decades. We should all hope that the post-Bretton Woods era is over. But it won’t be until the Greek population follows that of Iceland in saying no – and Ireland finally wakes up.

Financial Times columnist Martin Wolf writes that the eurozone “has only two options: to go forwards towards a closer union or backwards towards at least partial dissolution. … either default and partial dissolution or open-ended official support.” But ECB intransigence leaves little alternative to breakup. Europe’s payments-surplus nations are waging financial war against the deficit countries. Without a common union based on mutual support within a mixed economy – one capable of checking financial aggression – the European Central Bank replaced the military high command. Its bold gamble is whether the Greeks will be as stupid as the Irish, not as smart as the Icelanders...'

TomGa's picture

The head of the Ifo Institute, Hans-Werner Sinn, calls Greece a "bottomless pit." Can't be saved by the way being tried now, by "throwing new money after old."

Reptil's picture

funny... Minister De Jager of the Netherlands said: "Whatever happens, Greece needs extra money from the IMF and the European Union"

But that's the same guy that said he was "no longer talking to Iceland".

What a clown!

topcallingtroll's picture

The greeks will say or put down on paper whatever is necessary to get the next disbursement.

The problem is not this disbursement, but subsequent ones when words must turn into real sacrifice from the greeks.

GeneMarchbanks's picture

There just has to be a "reprofiling" in the works behind closed doors, I cannot see how this will get resolved in less than a six month period. Unless they just extend the current bailout fund which would come from... ?

Franken_Stein's picture


The troica will install a viceroy.

His name: Pontius Pilatus.

Half-life: One day.


This will certainly be a hot topic at this year's Bilderberg meeting starting tomorrow in St. Moritz, Switzerland at the Suvretta Haus hotel overlooking Lej da Champfer lake, where they will discuss how to make the Greeks grab the ankles even harder.


Franken_Stein's picture



St. Moritz is only some 20 km south of Davos,

home of the annual World Economic Forum.


carbonmutant's picture

Greece needs to cut a manufactuing deal with Apple...

kaiten's picture

Or found an IT company called: Olive.

cranky-old-geezer's picture

... its recession appeared to be longer and deeper than initially expected.

Bankers love rose-colored glasses. 

Greece is bankrupt and has been for some time.  A zombie nation, just like zombie banks.

Loans continue not to save Greece but to save bondholders.

XRAYD's picture

Ultimately, someone like Carl Icahn will have to take over Greece.


They could even convince Trump to lend his name and put it on the Acropolis!

Dick Darlington's picture

"The long-awaited report by the so-called "troika" said Greece risked missing its deficit targets without further consolidation measures and that its recession appeared to be longer and deeper than initially expected.

The kleptocrats aka "troika" are losing the game slowly but surely and yet they still mumble the same mantra day after day. Gee, who could possibly have seen that cutting everything to zero doesn't make the economy boom. But maybe if they force the greeks to cut even more the boom will follow, right... Uh huh... Their "strategy" has failed and time is running out to save the bondholders. There's only one thing left for the greeks to cut and that is the ties to eurozone. Maybe and hopefully after that the rest will follow.

Highrev's picture

Default this weekend.

- I have no secret source. It just sounds good (and it's not too far fetched).

Sizzurp's picture

When credit dries up, it's time to pay the piper.  Greece is facing what we will eventually.  Unsustainable systems succumb to gravity.

MIDTOWN's picture

perhaps the bankers are eager to claim stake to private islands so they have somewhere to escape once the real SHTF.

Alea Iacta Est's picture

Little skeptical here as Reuters has been doing a poor job getting the news out of Greece right recently. Specfifcally "The Deal is Done!" story.

Eireann go Brach's picture

Where is Goldman on this? they helped cook the books for the Greeks!

Joebloinvestor's picture

Greece will supply financial data that is as accurate as a "Little League" Filipino birth certificate.

Expect it to tell what they want to hear.

tooktheredpill's picture

that was the only way they could get the euro

stewie's picture

What's an "Adjustment Program"?

Quantum Nucleonics's picture

"...until it corrected the under-financing in its adjustment program."


Translation... They need to raise taxes, cut more spending, or no more $$$.  That will go over well with the huddled masses, urning to keep cushy jobs and generous pensions.  If Greeks worked with the same dedication they riot, err, protest, they'd have paid back their loans months ago.


Please just default, so we can move on.  Go with a 50% haircut, a principal extension to 20 years, and a rate cut to 4%.  There, problem solved!

Rick64's picture

Structural Adjustment Program (SAP) is the final stage where the IMF rapes Greece for its government owned land, businesses, and resources which are sold to favored foreign multinational companies for less than their worth. Meanwhile citizens will have higher taxes, inflation, lower wages, and less benefits. This game has been going on for decades.

Buck Johnson's picture

Obama put his two cents in yesterday about Greece and hinting that the US will support the bailout.