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Latest Greek Aid Tranche To Be Delayed After Troika Talks Break Down

Tyler Durden's picture




 

Here we go again. As we reported yesterday, Greece was due to present to the Troika "how to cut a massive 150,000 public sector jobs: a move which will result in an immediate surge in public unrest, and an exponential jump in strike activity.... Greece is locked in talks with international creditors in Athens about shrinking the government workforce by enough to keep bailout payments flowing. Identifying redundant positions and putting in place a system that will lead to mandatory exits for about 150,000 civil servants by 2015 is a so-called milestone that will determine whether the country gets a 2.8 billion-euro ($3.6 billion) aid installment due this month. More than a week of talks on that has so far failed to clinch an agreement." Fast forward to today when we learn that any hopes a last minute solution would materialize, allowing the monetary spice to flow and the €2.4 billion loan to be paid, were just dashed following a breakdown in talks between Greece and the Troika. Deja vu all over again.

From Kathimerini:

Troika representatives are due to leave Athens on Thursday with no final agreement having been reached with the coalition on a range of structural reforms but with the Greek side insisting that the pause in the talks will not lead to complications in the disbursal of its next loan tranche from the eurozone and International Monetary Fund.

 

Talks between Prime Minister Antonis Samaras and officials from the IMF, European Commission and European Central Bank lasted for a couple of hours on Wednesday night but there no conclusion was reached on matters including the reduction of civil servant numbers and a payment plan for firms and individuals who owe social security contributions.

Who can forget the perpetual Greek optimism, which spun every development, no matter how bad, as very good. For those who have, here is a reminder:

Despite the apparent impasse in the discussions, Finance Minister Yannis Stournaras insisted that the two sides were edging toward a deal and that Greece’s next loan tranche of 2.8 billion euros was not in danger.

 

“There has been significant progress in the talks with the troika,” Stournaras told journalists after leaving the talks at the Maximos Mansion, in which he also took part.

 

“The negotiations will continue when the troika representatives return. There is no issue with the loan tranche,” he added.

 

The finance minister indicated that the troika team would return to Athens at the end of the month or at the beginning of April, which means that Greece will not receive its bailout installment this month, as had been originally planned.

 

Stournaras said that just “technical issues” remained to be resolved between the two sides but the indications were that there are still substantial differences on a range of concerns.

Technical issues: such as justifying to some 150,000 public servants why they will have no job in under two years.

The minister did not specify which matters are still the subject of negotiations but over the past few days negotiations focused on civil service firings, the continuation of the emergency property tax introduced in 2011 and how to recover unpaid taxes and social security contributions.

This is eerily reminiscent of events from early 2012, when Greece was repeatedly "fixed", only for the EURUSD adrenaline to peak with the summer elections when Syriza almost received enough votes to renegotiate the very unpopular memorandum under whose auspices Greece has seen the youth unemployment percentage approach triple digits with every passing month. In the process peripheral bonds exploded leading to numerous Eurogroup and Finmin summits, leading up to the ECB's OMT, penned under Buba duress but at least arresting the complete collapse, if only briefly, in the sovereign bond market and the raging bank runs across the PIIGS.

It was also Greece that cratered the fragile 'recovery' that the US (and Europe) was undergoing in early 2012, not to mention 2011 and 2010.

It is only fitting for Greece to ruin the party for everyone once more.

 

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Wed, 03/13/2013 - 18:48 | 3327815 HedgeAccordingly
HedgeAccordingly's picture

more Gyro's - http://hedge.ly/14Yl35R   

 

Wed, 03/13/2013 - 19:01 | 3327845 nope-1004
nope-1004's picture

You say Greece has a problem?  Germany, you lent us the money. YOU have the problem.

- Mr. Panos

Wed, 03/13/2013 - 19:03 | 3327858 Dealer
Dealer's picture

Germany will switch sides and align themselves with China and Russia.  They will play a key role in the mechanics of the new gold based payment system.

Wed, 03/13/2013 - 19:08 | 3327870 Rustysilver
Rustysilver's picture

Dealer,

Where have you been: Germany has switched side and sucking up to Russia for about 10 years. Germany needs Russian oil and NG.

Wed, 03/13/2013 - 19:50 | 3327996 zaphod
zaphod's picture

I thought Greece already sold themselves to the UAE, didn't zerohedge write about this just last week?

Wed, 03/13/2013 - 20:30 | 3328106 augustusgloop
augustusgloop's picture

molotov rippentrop redux. i like it. tsing tao for everyone!

Wed, 03/13/2013 - 20:31 | 3328108 Freddie
Freddie's picture

Greece should cut all the unionize govt workers pay 50%.  They should also make Brussels cut all the EUSSR parasites pay 50% as well.   The only way Greece leaves the EUro is if they are thrown out.

U.S. unionize state, local and federal workers are the same parasites who need a 60% pay cut.   Cops, firefighters and teachers get 40% pay cut. 

Cops who shoot people's dogs (most of them) need to be fired and jailed.

Wed, 03/13/2013 - 21:44 | 3328269 SeverinSlade
SeverinSlade's picture

All this fuss over around $3.5 billion? Heck Bernanke can print that during one POMO.

Wed, 03/13/2013 - 23:16 | 3328541 lolmao500
lolmao500's picture

Or when Syriza wins and tells the eurocrats to go fuck themselves...

Wed, 03/13/2013 - 23:38 | 3328581 Escapedgoat
Escapedgoat's picture

SYRIZA  is the other  scam-artists that PRETEND  to dissagree on the Euro Front:

http://www.brookings.edu/blogs/up-front/posts/2013/01/25-tsipras-washing...

You don't get invited to NY if they do not approve of you. They have done some Fantastic Somersaults worthy of Nandia Comanetsi.

Sexy Alexi IS THEIR MAN

Wed, 03/13/2013 - 20:34 | 3328119 augustusgloop
augustusgloop's picture

molotov rippentrop redux. i like it. tsing tao for everyone!

Wed, 03/13/2013 - 22:36 | 3328413 Strizzi
Strizzi's picture

sorry to say this will not happen as Germany is still and has  by admission of Finance secretary Mr.Schaeuble not been a sovereign state since 8th May 1945 with no peace treaty and no real constitution to this very day.

Germany is a vasall state of USrael run by a foreign quisling-regime whatever interchangeable party configuration comes into power helped on by completely down to the core corrupted press and mass media, obfuscating the sheeple and distracting the masses with bread and circus pretty much the way the american criminal ruling class dishes it out to their own people .

Thu, 03/14/2013 - 05:31 | 3327885 falak pema
falak pema's picture

When you owe the banks 300 billion you own them they don't own you! 

Jamie Dimon plays that game all the time with Potus and Ben.

Why can't these greeks learn the basics of financial scamming of the oligarchy league, not petty Zorba  thievery as in the past. 

Wed, 03/13/2013 - 18:49 | 3327818 bank guy in Brussels
bank guy in Brussels's picture

God help the Greeks to see the light

And kick that Troika out on their arses

Wed, 03/13/2013 - 20:44 | 3328146 Freddie
Freddie's picture

The Greeks have the best of both worlds.  They get to keep getting EUSSR euros and do some cutting here and there but the unionized govt paper shufflers and scam artists are getting full pay.  The avg Greek can strave as long as the unionized govt workers doing pretend work get their full pay in euros.

It seems like Grillo and some of the Italians are the only ones serious about the euro and EUSSR scam.   Italy appears to still have real elections unlike the retards in the United States.  Obamaville - what a pathetic joke country.

Thu, 03/14/2013 - 05:56 | 3328987 Anasteus
Anasteus's picture

The funny thing is that the name 'Troika' is a Slavic term for 'three-party-group' used in Russia, Poland, Bulgaria, former Czechoslovakia and some other former communist countries. It's mission reminds me a lot of the former commanding Soviet politburo brigades. What a symbolic name!

Wed, 03/13/2013 - 18:52 | 3327825 HD
HD's picture

There is no penalty for lying anymore. Promise whatever and fail to follow through.

Jawboning isn't just for central bankers...

Wed, 03/13/2013 - 19:07 | 3327868 EscapeKey
EscapeKey's picture

That depends on who you are.

Wed, 03/13/2013 - 20:14 | 3328067 HD
HD's picture

True. They are the weakest link in a chain of weak links. However - for whatever reason TPTB don't want a Grexit.

 

Wed, 03/13/2013 - 20:29 | 3328105 EscapeKey
EscapeKey's picture

For whatever reason?

"...in April 1931, Germany announced a customs union with Austria. France protested that such a union was illegal under the Treaty of Saint-Germain, by which Austria had promised to maintain its independence from Germany. The dispute was referred to the World Court, but in the meantime the French, to discourage such attempts at union, recalled French funds from both Austria and Germany. Both countries were vulnerable. On May 8, 1931, the largest Austrian bank, the Credit-Anstalt (a Rothschild institution), with extensive interests, almost control, in 70 percent of Austria’s industry, announced that it had lost 140 million schillings (about 520 million). The true loss was over a billion schillings, and the bank had really been insolvent for years."

--Carroll Quigley, "Tragedy & Hope"

Wed, 03/13/2013 - 20:38 | 3328122 HD
HD's picture

Well look at that, I learned something!

 

Thu, 03/14/2013 - 04:44 | 3328938 Haus-Targaryen
Haus-Targaryen's picture

Reason #231,489,651,261,566 to hate the French. 

Wed, 03/13/2013 - 18:53 | 3327830 Unique Snowflake
Unique Snowflake's picture

Grow a scrotum, people of Greece. It's called revolution. Tell them to GTFO and then exit Europe. Revalue and start fresh. Look at Iceland, for fucks sake.

Wed, 03/13/2013 - 19:15 | 3327891 sabra1
sabra1's picture

When are you Americans gonna grow some balls? At least the Greeks are on the streets. You Americans are watching "The Biggest Loser" aren't you all? Well, you're all The Biggest Losers, castrated sucks! 

Wed, 03/13/2013 - 19:33 | 3327932 lotusblue
lotusblue's picture

 sabra1,

    It's dificult for the GMO foodstuffs.Apathy runs deep when you don't know anything different.Bernays has modified the once marvelous experiment.I'll be moving to Portugal soon.

Wed, 03/13/2013 - 19:43 | 3327967 knukles
knukles's picture

We are not losers.
We are led by the Messiah.
Who will be idolized upon Mt Rushmore, should have been elected Pope, will bring peace, equality and all that shit to hopefully, Botswana. 
Or maybe Detroit.
Or if we're feeling benevolent or even altruistic, even your hometown...
By force!

 

Wed, 03/13/2013 - 23:18 | 3328545 lolmao500
lolmao500's picture

How can Americans revolt when most of them think the economy is recovering?

Wed, 03/13/2013 - 18:54 | 3327835 no life
no life's picture

Cue the rumors of more QE from Steve Liceman..

Wed, 03/13/2013 - 19:12 | 3327879 no life
no life's picture

Who is the cocksucker who gave me a thumbs down?

Wed, 03/13/2013 - 19:15 | 3327887 MsCreant
MsCreant's picture

Steve probably. No one else gives a flying fuck.

Wed, 03/13/2013 - 19:44 | 3327973 knukles
knukles's picture

Dr Paul Krugman.

Hi sweets!
How you doin'?

Wed, 03/13/2013 - 20:13 | 3328064 MsCreant
MsCreant's picture

Hey dear one! Happy to see your avatar, creating mischief as usual. 

I am doing pretty darn well, usual bullshit politics at work but otherwise life is very good!

Is there an injection you can get against Krugmanism? And I don't mean "liquidity." I mean, just like eeeew, or something! 

Wed, 03/13/2013 - 20:55 | 3328168 knukles
knukles's picture

Glad things be that good. 
LOL
Liquidity injection  Ah, circles with within circles, if you get my drift.
Against Krugmanism?
Well, we're not he only ones trying. He got reamed by Charlie Rose and Joe Scarborough real good, as well as a few other recent interviews.  Seems even his own ilk are turning... altho those who are devoted NYT readers still believe....
Say if you want an interesting C Rose (who I generally ignore as he's a life time participant in the Bilderberger meetings...NWO, etc) he had a fabulous interview on last night with Jeremy Grantham, one of the founders of Grantham Mayo Oterloo (GMO)  Fantastic intellect.  Great watch.
Glad you're doing well.  I've missed your presence.
Keep comin' back...next week is 8 for me :)

Wed, 03/13/2013 - 19:21 | 3327901 Landrew
Landrew's picture

Funny, I just gave you one for caring ha!

Wed, 03/13/2013 - 19:00 | 3327842 JustObserving
JustObserving's picture

whether the country gets a 2.8 billion-euro ($3.6 billion) aid installment due this month

The Fed prints $3.6 billion every 1.27 days.  Surely, helicopter Ben can bail out Greece. $3.6 billion is not even a rounding error in Bernanke's printing.

Wed, 03/13/2013 - 19:09 | 3327869 EscapeKey
EscapeKey's picture

All the main CBs inflate at pretty much the same pace. Ben is bailing out Greece as much as the BOJ is bailing out the BoA.

The main head of the Hydra is located in Basel.

Wed, 03/13/2013 - 18:58 | 3327844 lotusblue
lotusblue's picture

With Merghi relaxing demands on Cyprus,I'm inclined to think the 150k job loss is going through for the 2.8bil tranche.

Now,this is not to say the tightrope of bailout couldn't snap at any time.It's in hands of polis.

It'll all unravel eventually like golf-ball innards upon critical mass.Troika happy Greeks made it through winter with easier clime approaching populace will aquiesce from taking back control of thier lives.

 

Wed, 03/13/2013 - 19:00 | 3327849 Scro
Scro's picture

They need to get paid in gyro sandwichs.

Wed, 03/13/2013 - 19:02 | 3327857 Phroneo
Phroneo's picture

The market doesn't even react to this news anymore. It doesn't matter if Greece doesn't meet this or that criteria. We all know that when choosing between saddling the general population with liabilities taht will never be repaid, or keeping their euro-dream alive, they will always choose the latter. Deadlines will be extended and expectations lowered.

Wed, 03/13/2013 - 19:29 | 3327919 machineh
machineh's picture

So I should buy the Dow Diamonds and gun for Dow 15,000?

Wed, 03/13/2013 - 19:10 | 3327876 falak pema
falak pema's picture

nervous break down of Troika under the Beppe Grillo effect.

There was a Greek MP in Europarliament who collapsed today. Beppe is having a devastating effect on the greeks.

Wed, 03/13/2013 - 19:12 | 3327881 MsCreant
MsCreant's picture

Circus McJerkus. Bahh!

Wed, 03/13/2013 - 19:14 | 3327886 kito
kito's picture

too much already. too much. i cant absorb anymore of this regurgitated farce...............

Wed, 03/13/2013 - 19:30 | 3327925 machineh
machineh's picture

That's what drugs are for, son.

Make it all go away ... at least till tomorrow.

Wed, 03/13/2013 - 19:14 | 3327889 rhinoblitzing
rhinoblitzing's picture

Greece Gets Skewered again - yet France states that Austerity is not the answer for France - The French beleive in some form of nationalism - no?  The Hypocratic Ponzi continues.

Wed, 03/13/2013 - 19:19 | 3327898 adr
adr's picture

OFF TOPIC but important:

RBS bank has been the victim of an account hack. Confirmed with a customer service representative. An unknown number of accounts were accessed and repeated login attempts locked users accounts.

My account was accessed but not breached. I spent a half hour with customer service changing my account information today. I don't know if any accounts were actually breached, but the main system was hacked.

Wed, 03/13/2013 - 19:23 | 3327906 MsCreant
MsCreant's picture

Enough of this could bring the whole system down...gosh.

Wed, 03/13/2013 - 21:34 | 3328245 shovelhead
shovelhead's picture

Back door into the Exchequer.

Hyuk hyuk.

Wed, 03/13/2013 - 19:26 | 3327912 rubearish10
rubearish10's picture

Wash, rinse, repeat like a well trained lemming!

Wed, 03/13/2013 - 19:30 | 3327922 Rustysilver
Rustysilver's picture

Meanwhile not far from Greece:

"For the fourth time in the past month, a Bulgarian has set fire to himself.

The man, 52, threw petrol over himself outside the presidential palace in Sofia, police said."

Wed, 03/13/2013 - 19:43 | 3327966 RSBriggs
RSBriggs's picture

Molotov Cocktail?   You're doing it wrong!

Wed, 03/13/2013 - 23:20 | 3328552 lolmao500
lolmao500's picture

How useless. Instead of killing yourself worthlessly... try offing a politician or a bankster FFS!! At least your death (or arrest) will have served a purpose!!

Wed, 03/13/2013 - 19:42 | 3327962 gould's fisker
gould's fisker's picture

I thought this was all fixed up.

Wed, 03/13/2013 - 19:49 | 3327981 knukles
knukles's picture

It was.

 

(once upon a time there was a little country ...)

Wed, 03/13/2013 - 19:49 | 3327992 de3de8
de3de8's picture

You watch, BerSpankMe will backstop the whole mess.

Wed, 03/13/2013 - 20:12 | 3328059 Tsar Pointless
Tsar Pointless's picture

You know, whiskey dulls the pain of this shit, at least for a little while.

Wed, 03/13/2013 - 20:18 | 3328079 MsCreant
MsCreant's picture

I wonder if they actually believe that they can out run this thing because of digital printing? I have assumed they know it will crash and they are trying to reap and rape and assume the position for when it does, but what if they believe they can get in front of it? Said another way, how would one play that if you thought they believed their own bullshit?

Wed, 03/13/2013 - 21:39 | 3328256 shovelhead
shovelhead's picture

Doesn't look good for Riot Dogs government job...

Nobody cares about the horsemeat in pet food when it's in the gyros too.

Maybe he can get on with one of the banks.

Wed, 03/13/2013 - 22:15 | 3328353 Joebloinvestor
Joebloinvestor's picture

I never found out if the gold that was pledged ever got moved.

If it did, Greece is toast.

Wed, 03/13/2013 - 22:56 | 3328486 vote_libertaria...
vote_libertarian_party's picture

Greece just needs to PROMISE to cut 150,000 jobs in 2015 to get a check next week?

 

Is anybody else seeing the weakness in that plan?  (I mean for those expecting to get paid back)

Wed, 03/13/2013 - 23:21 | 3328512 lolmao500
lolmao500's picture

So... how long will Greece last with 3.6 billion? A month? A year?

Thu, 03/14/2013 - 02:51 | 3328851 dunce
dunce's picture

Doing nothing to solve a problem is a choice, but one with a very low success rate, at least in the near term. Perhaps they think that they have all the time in the world. The pain might go away if they stop beating their heads against the wall, turned around and faced the facts.

Thu, 03/14/2013 - 10:24 | 3329372 youngman
youngman's picture

They will say they are going to cut jobs...then don´t..but still get the cash..its worked before..why change...lying is good...bankers do it well...so do politicians...

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