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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.

 

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Wed, 06/08/2011 - 13:03 | 1351408 Gubbmint Cheese
Gubbmint Cheese's picture

Opa!

Wed, 06/08/2011 - 13:19 | 1351479 Vergeltung
Vergeltung's picture

lol

 

Wed, 06/08/2011 - 19:33 | 1352943 knukles
knukles's picture

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

No wonder there's confusion.

 

Wed, 06/08/2011 - 13:02 | 1351417 the not so migh...
the not so mighty maximiza's picture

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

Wed, 06/08/2011 - 13:17 | 1351472 topcallingtroll
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?

Wed, 06/08/2011 - 13:42 | 1351569 forexskin
forexskin's picture

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

 

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

Wed, 06/08/2011 - 13:42 | 1351568 Urban Redneck
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.

Wed, 06/08/2011 - 14:02 | 1351653 NoClueSneaker
NoClueSneaker's picture

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

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

 

Wed, 06/08/2011 - 13:02 | 1351418 Tortfeasor
Tortfeasor's picture

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

Wed, 06/08/2011 - 13:09 | 1351428 Orly
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.

Wed, 06/08/2011 - 13:15 | 1351463 jtmo3
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.

Wed, 06/08/2011 - 13:24 | 1351496 Orly
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!

Wed, 06/08/2011 - 13:46 | 1351594 scratch_and_sniff
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.

Wed, 06/08/2011 - 16:15 | 1352228 Orly
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.

Wed, 06/08/2011 - 13:04 | 1351430 redpill
redpill's picture

This will not end well.

Wed, 06/08/2011 - 17:45 | 1352615 Dismal Scientist
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...'

Wed, 06/08/2011 - 17:48 | 1352624 Dismal Scientist
Dismal Scientist's picture

 

dup

 

Wed, 06/08/2011 - 13:08 | 1351438 TomGa
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."

http://www.bilanz.ch/gespraech/hans-werner-sinn-fass-ohne-boden

Wed, 06/08/2011 - 17:16 | 1352486 Reptil
Reptil's picture

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

http://www.nrc.nl/nieuws/2011/06/07/de-jager-griekenland-heeft-hoe-dan-o...

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

What a clown!

Wed, 06/08/2011 - 13:13 | 1351456 topcallingtroll
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.

Wed, 06/08/2011 - 13:17 | 1351457 GeneMarchbanks
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... ?

Wed, 06/08/2011 - 13:20 | 1351461 Franken_Stein
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.

 

Wed, 06/08/2011 - 13:26 | 1351503 Franken_Stein
Franken_Stein's picture

FYI

 

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

home of the annual World Economic Forum.

 

Wed, 06/08/2011 - 13:18 | 1351464 carbonmutant
carbonmutant's picture

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

Wed, 06/08/2011 - 15:17 | 1351972 kaiten
kaiten's picture

Or found an IT company called: Olive.

Wed, 06/08/2011 - 13:24 | 1351492 cranky-old-geezer
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.

Wed, 06/08/2011 - 13:23 | 1351504 XRAYD
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!

Wed, 06/08/2011 - 13:34 | 1351529 carbonmutant
carbonmutant's picture

.

Wed, 06/08/2011 - 13:38 | 1351564 Dick Darlington
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.

Wed, 06/08/2011 - 13:47 | 1351597 Highrev
Highrev's picture

Default this weekend.

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

Wed, 06/08/2011 - 13:51 | 1351606 Sizzurp
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.

Wed, 06/08/2011 - 14:02 | 1351638 MIDTOWN
MIDTOWN's picture

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

Wed, 06/08/2011 - 14:02 | 1351642 Alea Iacta Est
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.

Wed, 06/08/2011 - 14:17 | 1351701 Eireann go Brach
Eireann go Brach's picture

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

Wed, 06/08/2011 - 14:25 | 1351746 Joebloinvestor
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.

Wed, 06/08/2011 - 17:10 | 1352446 tooktheredpill
tooktheredpill's picture

that was the only way they could get the euro

Wed, 06/08/2011 - 14:29 | 1351770 stewie
stewie's picture

What's an "Adjustment Program"?

Wed, 06/08/2011 - 16:01 | 1352178 Quantum Nucleonics
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!

Wed, 06/08/2011 - 16:49 | 1352376 Rick64
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.

Wed, 06/08/2011 - 20:44 | 1353121 Buck Johnson
Buck Johnson's picture

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

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