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Greece Requests Six Month Loan Agreement Extension, Denies It Requests "Memorandum" Extension
As had been leaked in advance, earlier today Jeroen Dijsselbloem first reported...
Received Greek request for six months extension.
— Jeroen Dijsselbloem (@J_Dijsselbloem) February 19, 2015
... that Greece had submitted a request to euro-area creditors to extend the availability of bailout funds for six months, i.e., an extension to the "Master Financial Assistance Facility Agreement" not an extension to the Greek "bailout programme" aka the Memorandum per se...
#Greece: Bailout extension to be monitored by #Troika - sources to Reuters. Greek officials deny they've requested Memorandum extension.
— José Miguel Sardo (@jmsardo) February 19, 2015
... which has been the sticking point in all Greek government public addresses in recent days. Greece further asked for best use of flexibility in "current arrangement", which supposedly means an unconditional extension with Greece given the liberty to determine what happens in the next 6 months without Troika intervention. But was it a bailout extension or just a loan extension?
It appears not even Greece is certain after Market News reported that:
- GREECE DENIES HAS REQUESTED EXTENSION OF 'BAILOUT'-OFFICIAL: MNI
And furthermore:
Greece hasn't accepted Troika terms: "will stabilise Greece's fiscal position, attain appropriate primary fiscal surpluses".. fight goes on
— A Evans-Pritchard (@AmbroseEP) February 19, 2015
So what exactly does Greece want, ask or request? As Bloomberg reports, Greek authorities state intention to cooperate with partners in order to avert technical impediments in context of Master Facility Agreement recognized as binding vis-a-vis financial and procedural content, according to draft letter requesting extension obtained by Bloomberg News.
- Greek govt applying for extension of Master Financial Assistance Facility Agreement for 6-month period
- During extension, authorities will make best use of given flexibility in current arrangement, toward its successful conclusion and review on the basis of the proposals of Greek govt and institutions.
- Purpose of 6-month extension to Greek loan facility is to agree on mutually acceptable terms for the stabilization of Greece’s financial position, attainment of fiscal targets, according to draft extension request letter obtained by Bloomberg News.
- Any new measures will be fully funded, Greek authorities will refrain from unilateral action which would undermine fiscal targets
- Extension will allow reintroduction of collateral waiver for Greek banks, extension of availability of EFSF bonds held by the HFSF
- Extension will allow for work to begin on new contract arrangement between Greece, Europe and IMF to follow on existing agreement
- Extension will allow agreement on supervision under EU, ECB framework and IMF during extended agreement
- Extension to allow discussion on means to implement Nov. 2012 commitment on debt relief
Of course, as we first reported two days ago when redlining the original, Moscovici, and final Eurogroup draft proposal, what Greece is requesting is merely a return to the original, "agreed-upon" language formulation. The problem is that now that Europe officially threw up on that language, conceding to the Greek bailout proposal would effectively see the European Goliath bested by the Greek David, something which Germany's Schauble will hardly agree to.
As such the Eurogroup promptly takes a cautious tone:
- EU SAYS GREEK GOVT SENT LETTER REQUESTING EXTENSION
- EU SEES `POSITIVE SIGN' IN LETTER FROM GREECE
- EU SAYS GREEK LETTER MAY PAVE WAY FOR REASONABLE COMPROMISE
- EU SAYS CONTENT OF GREEK LETTER TO BE DISCUSSED BY EUROGROUP
- EU'S JUNCKER SEES GREEK LETTER AS FIRST POSITIVE SIGN -BBG
Still, Yanis Varoufakis would surely not have sent in an extension request without getting a preapproval on the language in advance from Europe, would he? Here is what Keep Talking Greece reported moments ago to clarify some of the confusion:
A little light in the confusion… What is the loan agreement for which Greece requests an extension?
“Greece requested an extension of the Master Financial Assistance Facility Agreement” government sources told several media.
The M-FAFA is the official name of the agreement between Greece and the Eurozone.
The loan agreement was signed between Greece and the European Financial Stability Facility (EFSF) and amended 12. December 2012.
Full 68-page text here in pdf
(sources: To Vima, Left.gr)
The EuroWorkingGroup will take up the Greek request at 4 pm today, an extraordinary Eurogroup meeting with physical presence of the Finance Ministers (no tele-conference) is allegedly scheduled for 3 pm tomorrow Friday.
This could be translated into an agreement between Greece & the Eurogroup
Speaking earlier to To Vima, FinMin Varoufakis said that the extension requested is until 31. August 2015, and that it does not contain “recession measures.”
“There will be a YES or NO at the Eurogroup” on Friday, he added.
So was this it? Has Greece officially folded? Expect to find out shortly when the Eurogroup decides whether to go ahead and give Greece the green light on whatever linguistic acrobatic formulation is being passed around right now.
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what the hell is going on ????????
It's all Bullshit!!! Both sides will come to an agreement to kick the can a bit further and keep the printing presses going full tilt.
How long is this fucking road? We've been 'kicking the can' down it since 2008.
the western economies are based on printing. Everything you see is to distract you from the printing and the collapse in living standards that entails. They will print until dead dead dead.
Absolute fucking farce.
I don't swear very often but this is all totally ridiculous - and most of the lying or rumour spreading seems (maybe I'm wrong) to have come from the Troika side and people like Jeroen René Victor Anton Template Dijsselbloem - dick.
DavidC
I don't swear very often.
I do. Greece is in the rearview fucking mirror...onto the next bullshit.
i swear often and don't give a fuck what others think. some say i'm not civilized. if you met me in person you would realize swearing is for emphasise of nouns. gets peoples attention. plus i can find out who is religiouly brainwashed...
Ain't that the fucking truth.
lol, we could have an intelligent fucking conversation - eh...
this whole greek situation has become "moar of the same" without the tough stuff, like real change. anybody that has raised childern knows that no is an option and has lasting consequences - sets boundries that carry on through life. hmmm "i don't get shit for nothing". geeze, i might have to go it alone and figure shit out. wow a novel idea in the nanny state of affairs worldwide where as the central banks are the ultimate nanny to control the childern...
There was never any discussion with Greece. Just the Troika in a panic telling everyone that they spoke to Greece when in reality they did not.
Can kicking....
I have a hypothesis.
What if the Greek gov is actually encouraging bank runs. What if they wanted to get as much money as possible into the hands of the people? They would keep stringing the troika along, negotiate an increase in ELA, and then when they couldn't hold the tide back any longer they would default and let every bank fail spectacularly. The people are holding cash, the banks all go tits up, and the EU is left holding the bag.
Too slow
You may be on to something here Tortfeasor. I too am a believer in "string theory" but ususally as it relates to dating; however, I can see that our yogurt eating friends are into the legalism version also. Maybe they are cleaning out the spouse's bank accounts before pulling the ripcord and bailing.
By Robert Stevens19 February 2015
German Finance Minister Wolfgang Schäuble denounced a new Greek proposal for a six-month loan extension with the naked ultimatum, “It’s not about an extension of the loan programme, it’s about whether this program is fulfilled, yes or no.”
He was reiterating Germany’s demand that Greece honour Greece’s commitment to impose savage austerity measures to the hilt, irrespective of the dire consequences for millions of working people.
A further indication of German opposition came Wednesday evening, with the decision of the European Central Bank (ECB) to grant a further extension of only €3.3 billion to Greek banks accessing the ECB’s Emergency Liquidity Assistance fund.
At the current rate of deposit outflows from Greek banks, this sum is estimated to cover just one week of funding. Even this sop revealed divisions on the ECB board, with the Bundesbank’s Jens Weidmann opposing even a token increase.
Greece’s current loan agreement with the so-called “troika” (European Commission, European Central Bank and the International Monetary Fund) expires at the end of this month. Without further loans, it will rapidly default on its foreign debt of €320 billion and be plunged into state bankruptcy, a massive run on the banks and a forced exit from the euro-zone.
If any agreement is reached between the Eurogroup and Greece, the essential demand being made is that it will be based on a continuation of austerity and that Syriza will enforce this agenda.
http://www.wsws.org/en/articles/2015/02/19/gree-f19.html
we want to extend the LOC, but, but, it's not a bailout. wtf is it then? huh, you need money from sugar daddy or face situation where you can't MAKE PAYMENT. to weak to deal with the situation. fucken pickers. tell the childern to clean their room up or else!
to all the zhers that PREDICTED CAN KICK - ding, ding, winners, ha...
you aint the sugar dady so slow down .... read carefully above stupido ...
Of course, as we first reported two days ago when redlining the original, Moscovici, and final Eurogroup draft proposal, what Greece is requesting is merely a return to the original, "agreed-upon" language formulation. The problem is that now that Europe officially threw up on that language, conceding to the Greek bailout proposal would effectively see the European Goliath bested by the Greek David, something which Germany's Schauble will hardly agree to.
so you are thinking that greeks will exit? and the debt will get written off? honestly i want the same, but deep down i know that that humans are weak individually. if we have a david fighting golith, and david prevails i am wrong. i read the same and came to a different conclusion. if they were real they would say fuck off, take your debt ponzi contol scheme and shove it up your ass and be bye bye with provisions in place to go it on their own. i ask you, what are they waiting for? moar money for nothing? diplomacy to exit with some pride? don't add up...
plus the fabric of greek society is socialism. think, hope, realize...
I bet the new finance minister has had time now to review Greeces financial mess. I would also bet that even writing off ANY and all debt, including pensions, they can't get solvent even giving the government workers a large pay cut. Revenue just isn't there. Social breakdown would be next if Greece walks out of Euro.
Finance minister is now trying to save face and find a way to kick the can. No Drachma can save them, too far gone like sooo many others.
Gold Bitchez.....I pick up pennies
I seriously hope Greece retains their gonads and gets the f*** out. It's the glimmer of hope I'm holding onto for now. start the Collapse of the EU! And the size ratio of the two groups make it also poetic. And I like poetry.
"ImI'm praying for raIn. I'm praying for tidal waves. "
~MJK
Well it's true that Greece has never counted its enemies because in all cases her enemies have always been numerically superior. Inevitably the Greeks have always come out on top although 400 years under the Ottomans wasn't exactly an easy wait.
What strikes me as strange though is why Europe does not tell Turkey to piss off out of the Aegean so that Greece can exploit her oil wells which in turn will be a boon both to Greece economically and to Europe in terms of energy security.
"Greece Officially Requests Six Month Extension"
What a unique idea...Foot meets can...Gives it a kick! Certainly everything will be runnig smoothly in six months, if not kick it again!
Liberal Politicians are Fucked-Up in so many ways. Greece will fold like a cheap suit.
No confusion at all, let me trasnslate it for you all; Greece wants an extension to access to the bailout money while they figure out a way to not pay it back and weasle out of the terms.
Greece is managing Muslim violence .... better than her EU debt masters .... Muslims don't mess with countries with a strong cultural identity .... Mexico, Greece .... they like the weak, multi-cultural socialist whore countries !
Hmm,
explains what happened to your mother then!
Monetas = the bastard son of a thousand men.
http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_19/02/2015_547446
http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_19/02/2015_547447
Greece has folded folks.
Who's next again?
Germany ain't letting them....
See above post....
Eventually there will be nothing left to lose. They just aren't there yet. Sad that it has to get there.
template for the world playing out with the little nations/state/soveriegns first.
observe, think, realize and ultimately plan...
Let's pray the EU will reject this. For the sake of the Greek people
It would help if the peole of Spain, Portugal and Italy also made the same noises as the Greeks. As Benjamin Franklin once said,
"We must, indeed, all hang together or, most assuredly, we shall all hang separately."
Is say stuff the tactics and the delay and just make decisions one way or the other.
Delay just makes the inevitable more painful.
The raging inequality gap .... between compensation of public and private workers .... only gets worse exponentially .... as the Ponzi Planet .... wobbles off it's axis !
"Payment and per-centage of the workforce for Greece burocrats is Uuuuuup .... private economy sucks shit sticks !" ...Algore
And then this just on Wires (12:17GMT):
*GREEK LETTER DOESN'T OFFER SUBSTANTIVE SOLUTION, GERMANY SAYS
*GERMANY REJECTS GREEK EXTENSION PROPOSAL, GOVT OFFICIAL SAYS
*GREEK LETTER NOT IN LINE WITH AGREED EUROGROUP CRITERIA: JAEGER
*GREEK PLAN SEEKS BRIDGE FUNDING W/O FULFILLING PROGRAM: JAEGER
Whoopsies...
Euro drops to $1.1369 on reports Germany has rejected Greek loan request
I am not sure if we all understood that.
EU will not approve any extension with diminishing austerity.
Greek people will not accept any continuation of current austerity.
So do not worry. Can simply CANT be kicked down the road the usual way.
Lol. Greece has folded and it is still not good enough for Germany. Greece is going to be kicked out of euro. It never wanted to leave but it is going to be to kicked out. The few people who got it right were heavily minused here though...
Tough talking Greeks now back to begging their masters.
looks like greece stared into the abyss...and blinked.
This short clip is short and to the point and has a message for both sides.
https://www.youtube.com/embed/jEjUAnPc2VA
So let me get this straight :
the EU has misreported the facts and claimed those silly Greek leaders are folding. And the Germans are saying they weren't up for the foley deal anyway so it doesn't matter if the Greeks deny folding.
Not a bad way to divide the Greeks and foment mistrust in their new leaders and their bold claims.
Weather forecast for this weekend : extra long bank holiday with a 50/50 chance of sponsored coups over the coming weeks.
The Killers - Don't Shoot Me Santa
https://www.youtube.com/watch?v=cglLJJ0Czo8
Greece's new FinMin has an interesting take on how the world got into the economic mess it is in. In metaphorical terms, he describes how the U.S. plays a central role in the problems. He calls his metaphor "The Global Minotaur".
http://www.globaldeflationnews.com/the-global-minotaur-a-global-finance-...
My two cents . An extentions of loa facilities is different from agreeing to the program of the Troika . So , I think that the deal will be rejected . Time will tell !