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Greek Bonds Tumble As Bailout Talks Stall On $3bn Troika 'Savings' Demands
Can beggars be choosers again? Judging by the drop in Greek bond prices, the answer is no. As Bloomberg reports, Greek PM Samaras is pushing back against Troika demands for up to $3 billion more savings (i.e. cuts to spending) in 2015. The impasse risks leaving Greece without a backstop on Jan. 1 after the program ends, they said. With Greece full of bravado over managing to issue debt publicly, perhaps they feel they can ignore warnings from the uberlords in Brussels. "It's crucial that Greek authorities work with the troika to complete the current review,” but with the government in Athens refusing to concede there is a funding hole, the standoff means Greece may miss a Dec. 8 deadline for agreement on the steps required to unlock the 'aid' tranche.
Of course in this idiotic world, while GGBs are down over 1 pt - hovering near 9-month low prices (high yields), Greek stocks are up 3.3% today...
Greece’s government and its international creditors are deadlocked over a final round of measures required to release the last tranche of the country’s bailout, two people familiar with the negotiations said.
Prime Minister Antonis Samaras’s government is resisting pressure from the so-called troika of creditors for additional budget savings in 2015 of as much as 2.5 billion euros ($3.1 billion), said the people, who asked not to be named because the negotiations are private. The impasse risks leaving Greece without a backstop on Jan. 1 after the program ends, they said.
Troika representatives are furious because the Greek government has failed to come up with any concrete measures to plug the fiscal gap since euro-area finance ministers warned earlier this month about a lack of progress in Greece meeting its commitments, one person said. With the government in Athens refusing to concede there is a funding hole, the standoff means Greece may miss a Dec. 8 deadline for agreement on the steps required to unlock the aid and what comes after it, both said.
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While reviews by the troika of the International Monetary Fund, the European Commission and the European Central Bank have been characterized by unforeseen twists and deadlock, the difference now is that Greece’s 144.6 billion-euro bailout program is due to expire in a matter of weeks.
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A compromise needs to be found within hours, one of the people involved in the talks said yesterday. Failure to resume the review this week would make it impossible to complete it by Dec. 8, the person said.
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Greece! again? But they are the cleanestr dirty short in Europe right? all that yummy GDP growth?
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See Rex, I told you Greece would make it's way back into the rotation soon. Now where's that ebola story?
You have to read it elsewere its not covered here.
why does greece bend over backwards for those fucks? greece holds all the cards. its as simple as greece to troika: give us our loans or we'll leave the euro......
Even better, drop the Euro, do an Argentina on the bonds and publicly claim Obozo is a racist that hates all Greeks. The State dept. will throw them a few billion out of petty cash, problem solved.
+1......."the standoff means Greece may miss a Dec. 8 deadline for agreement on the steps required to unlock the 'aid' tranche."....is laughable, apparently traders have short memories and this is groundhog day.....again....they will never miss a payent as their "payments" are just recycled
"may miss" LOLOLOLOLOLOL
HUZZAH!! We've saved Greece- AGAIN!!!
Greece, the Washington Generals of Europe.
So they will end up "agreeing" on December 8th, get their next tranche, and get to extend and pretend for another year.
You want our bonds? Come and get them.
-Leonidas
This is not difficult except in a democratic socialist country. You can close the $3b gap by telling everyone in government they do not get their guaranteed raise next year. Worst case, everyone takes an across the board small pay cut.
This is how it is done in private business and I have been there and done this first hand. I have no sympathy for government parasites...of all sorts.
What about the government employees that haven't been paid for 6 months?
http://www.thisamericanlife.org/radio-archives/episode/455/continental-b...
Then cut their pay in half. It won't have any effect at all on them and yet will make the Euro Plantation overseers happy.
Ooops! That is an indicator that too much money is probably going to some other payouts or too many employees overall.
The point is to reduce the government versus shaking down the economy.
Yes its good to have Greece back.....its so fun to watch them fall apart...bailout or no bailout..they are still toast....they have nothing to sell but Olive oil....and a few nice views....everything else is corrupt...
"Contrived disagreements between government officials and representatives of the troika. Are used to persuade the public that the government resists against some of the troika demands without saying 'yes to all'. Since all the measures that the creditors want have already decided and agreed, the troika representatives will possibly quit from some of the additional measures that they demand, in order to help the Greek government to stabilize its position by giving the picture of a government which is negotiating and resisting at some level."
http://failedevolution.blogspot.gr/2012/10/some-methods-of-disorientatio...
The good citizens have long ago ducked under .
The lying is so pervasive that nobody has any idea of what the real situation is
See
https://www.academia.edu/9354151/The_Economics_of_Disrespect_
Tax evasion is now going into the next steps . See
https://www.academia.edu/8816411/Rogue_Swan_EU_disintegration
In the bigger picture of things (global) this is shaping up to be one serious shit storm.
I guess they are just gonna have to accept the IMF's definition of fresh milk after all