Eurogroup Gives Greece 10 Day Ultimatum: Apply For Bailout Or Grexit

Tyler Durden's picture

Update: And now this: "Moody's places Greece's Caa1 government bond rating on review for downgrade"

The key driver for the review for downgrade is the high level of uncertainty over the outcome of the negotiations between Greece and its official creditors over the terms of Greece's support programmer. The outcome could potentially have negative implications for Greece's ability to meet its funding and liquidity needs and for the probability of default on marketable securities. Moody's government bond rating applies to marketable securities only.


Moody's would consider downgrading Greece's Caa1 government bond ratings were it to conclude, as a result of the review, that (1) an agreement with official creditors is not likely to be reached in time to enable the government to repay its creditors who hold debt on commercial terms; and (2) that the likelihood of a significant deceleration or even reversal in the implementation of the adjustment programmer would further hinder Greece's growth prospects.

Surely Greece must be delighted to be part of the European "Union" at this point.

* * *

Europe has an unpleasant habit of dropping tape bombs at the most inopportune of times, like at 3pm or later a Friday. And while on Wednesday it was the ECB yanking repoable Greek collateral for local banks, today it was first S&P, which downgraded Greece 5 months after upgrading it, and moments ago it was none other than the Cyprus bail-in man himself, the Eurogroup's Dijsselbloem, aka Diesel "Blueprint" BOOM,  who just have Greece a 10 day ultimatum to fall into place or risk a terminal bank run and capital controls (both hinted at earlier by the post-DOJ settlement political "rating agency')


This means that Greece now has 10 days, or until the Monday after next to decide whether it will stay in the Eurozone or Grexit. More from Reuters:

[Yanis Varoufakis] made clear that the new government, which came to power on a wave of anti-austerity anger in elections last month, now wanted to forego remaining bailout money that had austerity strings attached:


"Greece is not asking for the remaining tranches of the current bailout programme - except the 1.9 billion euros that the ECB and the EU member states' central banks must return."


Euro zone finance ministers will discuss how to proceed with financial support for Athens at a special session next Wednesday ahead of the first summit of EU leaders with the new Greek prime minister, Alexis Tsipras, the following day.


However, the chairman of the finance ministers said the following meeting of the Eurogroup on Feb. 16 would be Greece's last chance to apply for a bailout extension because some euro zone countries would need to consult their parliaments.


"Time will become very short if they (Greece) don't ask for an extension (by then)," said Jeroen Dijsselbloem.


The current bailout for Greece expires on Feb 28. Without it the country will not get financing or debt relief from its lenders and has little hope of financing itself in the markets.

* * *

Participants said no progress was made at a preparatory meeting of senior finance officials in Brussels on Thursday because Greece and its euro zone partners were so far apart.


"It was Greece against all others, basically one versus 18," one official said.

Almost sounds like a reverse veto out of the European "Union".

At the end of the day what D-Boom has effectively said is this:

Which is precisely the thing Greece, whose negotiating position already has been crushed with the threat of a wholesale bank run, did not want to hear especially now that the government really has no choice: either it complies with European demands,  and can sign its resignation right after having flopped epically, or it pushes on to find out just how badly Europe is bluffing.

Suddenly next week's emergency Eurogroup meeting on Wednesday is looking quite fascinating. We hope the caterers have bulletproof jackets.

And with that we give you... EUROPE!

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SickDollar's picture

Dont fuck with  GREEK GODS

paging Zeus....

flacon's picture

So.... BUY STAWKS!    


SickDollar's picture


Dubaibanker's picture

Bring it on...the new Greek FM and PM must have seen this coming...if the people rally around them and the Russians or Chinese write a cheque...this will be a walk in the park...couple of weeks from now....

Bye bye EUR!

Let the breakdown of EUR begin.

Other nations will be idiots if they do not follow suit in salvaging whatever national self interest remains instead of listening to the Germans or ECB or whoever runs the asylum in EU!

max2205's picture

Hear ye hear ye,  the 3:30 ramp has been canceled 

BaBaBouy's picture

HERES Your Chance To Be Set FREE From The Fanged Vipers...

knukles's picture

If I was Greece, just to fuck with Dijsselbloem, I'd apply and tell 'em in the application I weren't gonna pay.
So you fuckers gotta throw me out meaning you were the precipitating event of the fucking collapse of the EU and Euro.

El Vaquero's picture

LOL knucks.


Lets see if House Atreides is willing to threaten the distruction of the spice in order to take control over it. 

ZerOhead's picture

< Stay

< Go

Should they stay or should they go

If they go there will be trouble

If they stay it will be double

So come on and let us know

Should they stay or should they go

Schizofrantic Squonk's picture

Crap, I upvoted you for the song, then realized it was a vote. Derrr. I think they go. Apply correction nstay=nstayapparent -1, ngo=ngoapparent =1


I'll go drink coffee.

El Vaquero's picture

You can change your vote simply by clicking the junk button.

cnmcdee's picture

Just as the rock leaves David's sling along it's airborne path the last thought to go through Goliath's thick forhead was  how he planned to make an example of this little sheep herder.

ZerOhead's picture

If I was Greece I would be pushing for ECB refinancing with a 20 year zero coupon bond.

What if anything is a euro going to be worth in 20 years anyway? Hell... give them 25% compounding interest just to shut the bankers up.

COSMOS's picture

Gosh with that nose, are we sure Draghi is not a closet Kohn like Kerry.

Self-enslavement's picture
Self-enslavement (not verified) Publicus Feb 6, 2015 9:03 PM

Only old white male Chosenites can print money. All you Zerohedgers are brainwashed if you think that a Christian, Muslim, Buddhist or Amish will ever be allowed to print money. Young can't print. Females not allowed to print their own currency. Those with dark skin pigment in their skin will NEVER be allowed to have a money printing press. The NATO chosenites will kill you dead before you get one bill out...

Killer the Buzzard's picture

"PUT THE F*%$ING LOTION IN THE BASKET!!!"   -- Diesel-Boom.

BigJim's picture

Grexit and the collapse of the Euro? I'm surprised gold only went down ~3%. Surely monetary chaos should make everyone sell their gold?

MarsInScorpio's picture

Just emailed to the Greek ambassador to the US:


His Excellency, Ambassador Christos Panagopoulos


Your Excellency:


Never have I read in times of peace the issuance such as the insane ultimatum of war as that issued by the Eurogroup Chairperson Jeroen Dijsselbloem against Greece: It is no less than the threat of unlimited warfare to destroy the Greek nation, if not by munitions, then by money.


The quote attributed to the Greek Finance Minister, Yanis Varoufakis, could not possibly be more true: "A clueless political personnel, in denial of the systemic nature of the crisis, is pursuing policies akin to carpet-bombing the economy of proud European nations in order to save them."


Many unenlightened Americans will fail to understand the reasons the Greek nation has declared its freedom from the extortion, and debt slavery, imposed on it by the psychotic sociopaths of the ECB, the IMF, and various European central banks, manipulating the financial machinery of the EU.


Unlike them, I do not fail to understand that this so-called austerity is nothing more than economic warfare designed to rape the nation of its assets, and the people of their survival, by creating an endless series of faux "bailouts" which have the real purpose of draining the nation of all its pride, dignity, and future.


When I read of the unemployment rate, the poverty level, the share of unemployed youth without hope, of female physicians reduced to prostitution to feed their children, of individuals who set themselves ablaze publicly because they are so beaten down by this war against the Greek nation, of these actions by the Troika which constitute nothing less than Crimes Against Humanity, my soul cries out in horror, and unimaginable pain, for the Greek nation.


There comes a time in history when a nation has no choice left but to put its destiny on the line, and be willing to sacrifice everything to throw off the chains, and regain its freedom, no matter what those sacrifices entail.


Because of what amounts to no less than a Declaration of War against Greece by the Eurogroup's chairperson, you are now at that point.


It is time for the world's first democracy to reclaim its heritage, and once again teach the world that remaining free sometimes requires that men and women fight for it. Whatever comes, the Greek people will adapt themselves and overcome it, just as they have overcome every other attempt by others to bury them.


Thucydides wrote, "The secret of happiness is freedom. The secret of freedom is courage."


Now is the time when the courage of the Greek nation must rise up, and face down the forces that would continue to enslave it.


Meet the ultimatum with 3,000 years of freedom, and shatter the predatory, criminal, strangle-hold of the EU on your people.




ZerOhead's picture

On the other hand when the global banking system crashes amongst the ashes of the ensuing derivatives holocaust (hereto to be refered to as THE GREAT HOLOCAUST)... and my ATM card doesn't work anymore... and the fruits and veggies disappear off the shelves...

Well... we will ALL surely be thinking of Greece.

Crap.. I'd better stock up on some toilet paper.

new game's picture

they will stay! the power of something for nothin is, well, very compelling.

last minute bend over coming; kinda like picken up dat quarter for free.

these are politians making these decisions...

zeropain's picture

they should play the clash when they enter the meeting.

Mark Urbo's picture

They would be stupid to stay...

Start printing the new dracmas !

JustUsChickensHere's picture

No need to use Drachma's .....  the Greek Euro has a 'Y' prefix   ... each country has its own Euro - the electronic Euro's can not be distinguished, but the the notes can be.

Just rename them as the Guro  ..... zero technical changes required for ATM's etc.  Already printing them in Athens..... print 300Bn and send them to the IMF, ECB and say 'debt paid'  ..... next.



Marco's picture

If they stay they can run a trade deficit for a couple more years, if they go they can have a bank run and a third world economy.

sandhillexit's picture

Of course, this should all go down on a US holiday.  Paging SOC GEN in 3...2....1...

Gilnut's picture

Actually there's no need for Greece to fuck with Dijsselbloem et. al.  For the last 2 years Greece has been running a primary budget surplus.  So all of the cards are still in the hands of the Greece govt.  I expect them to Grexit.  The only question is trade agreements, Greece needs to prepare for sanctions, but if they get trade agreements with the BRICS then that problem becomes less pressing.

Marco's picture

They can't replace EU trade and tourism by BRIC trade and tourism 1:1 ... not even 1/2:1. Distance does play a small part.

El Vaquero's picture

If all goes well, it won't be the kraken that the bankers have to worry about, it will be the fact that they have to downgrade to smoking crack cocaine from snorting high quality blow off of a hooker's ass.. 

Money Boo Boo's picture

the Krakken went for a rub down and a tub, he's pooped !!

HardlyZero's picture

Gold was massively shoved down today. 

This thing is going all the way, baby !!!

If anyone needed an economic crackup tipping point....over the cliff.

Then GREXIT GOLD !!!  Should now starting falling ... up.

In our lifetimes !

Stack PMs now (buy the POG and POS dips..)  get ready.

The Limerick King's picture



The soul of the species was sold

The fall of our system foretold

The heroes in Greece

Will win our release

(I'm buying the dips now in gold!!!)

Money Boo Boo's picture



We've finally released the damn Krakken

To stop all this ass frakken

But the House of Saud said No!

Time to get on your knees bitchez and blo!



Haus-Targaryen's picture

Perhaps the various EU and EMU institutions are trying to get the government in Greece to fail -- so they can diebold them back into compliance?

El Vaquero's picture

That has a chance of backfiring.  If Greece's new government was serious about its campaign promises, it should tweek the EU's nose to get the EU to put its boot on the throat of whatever is left of the Greek economy.  That way the new government gets to point at the EU and say "See what these fuckers are doing to us?" 


EDIT:  Now that I think about it, this is kind of like the EU panicing, then saying "You made your bed, now sleep in it."  It could take some of the blame off of them. 

mkkby's picture

A lot of folks here think Russia and China want to see the breakup of the EU.  I do not think so.  I think they want to see the end of us dollar reserve status, and the euro is a step in that direction. 

A grexit won't materially hurt the EU or euro.  TBTF banks will be bailed out.  Smaller ones may fail.  No big deal.  However, if spain or italy gets the same idea, then there is real trouble.

MaxMax's picture

How come everyone says Greece may abandon the Euro?  The problem is their debts - not the fact that they are on the Euro.  Why don't they just default?  They can just say "sorry guys, we can't pay you."  That isn't the same thing as saying "we aren't going to pay you and to really screw things up, we are going to change to our own currency."

Sure, the Euro allowed them to borrow too much at too low of an interest rate (sub-prime anyone) so being in the Euro helped them be irresponsible.  But lots of people got into trouble borrowing too much money to buy housing and got burned helped by banks which could package the debt off as AAA when it should have been rated D.  It's same scam with different players.

El Vaquero's picture

Because the EU bailouts have strings attached, and a bailout is nothing more than kicking the can.  Either it will be counted as debt itself, or it will lead to more debt.  Greece either accepts that, or leaves the EU.  That is the decision that the EU has given Greece.  

JustUsChickensHere's picture

There are no exit clauses in the Eurozone treaties .... no country can be forced out by using legal means under the treaty ... and no govt can be forced to pay its debts or interest...


Cute ...

realWhiteNight123129's picture

Go Greeks send them to hell! Remind everyone that the Greeks started the Western Civilization, and by killing the squid you will help restore it!


People&#039;sRepublicof CT's picture

Greece can choose to leave but the EU cannot make them leave. Thems the rules…So—Greece can tell the EU to pound sand and sit there like an unwanted guest. The only thing the EU can do is start to TRY and repo some assets. Then it gets interesting. All those who falsely compare the EU to the USA finally get to understand the main difference...Illinois (the USA's Greece) does not have a standing army.

Nice to live in interesting times....

Skateboarder's picture

Final Countdown? A defiant Syriza or not, there has been and will be one every few months.

p.s. Cherokee is the best song from that album. "Marchin' on the trail of tears...", an apt description.

SWRichmond's picture

Yes, one would think they could milk this for a few months worth of global economic excuses.

Or, Putin could step in with a few billion Euro-equiv and gain a new client state.  I am sure Greece would be happy to host a new pipeline.