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IMF Payment Sends Greek Yields Lower; Athens Warns "Next Month Is A Different Matter"
A central bank official, according to The FT, said that Greece has repaid the €450m it owed the International Monetary Fund today. Bond yields have fallen across the Greek curve with 10Y GGBs now at 11.1% (down 70bps from Tuesday's highs). Greek stocks are not as impressed and are giving back their gains. Tsipras, on return from Moscow, explained Greece "was not a beggar...asking other countries to solve its problem," but as a senior Greek official earlier this week said that while it would be able to make Thursday’s IMF repayment, it will still exhaust its cash reserves very soon and "next month is a different matter." HSBC points out that the real crisis point looms on the 12th May.
Greece repaid €450m it owed the International Monetary Fund on Thursday, sending bond yields sliding as investors’ showed relief it had met its deadline.
A central bank official said that the payment to the IMF had been made.
The payment only brings minimal relief to Greece, as the country remains cash-strapped and faces more looming debt repayment deadlines.
Bonds are rallying but stocks are rapidly giving back their gains...
As Reuters reports, the Greco-Russian meetings progressed well...but no cash yet...
Russian President Vladimir Putin offered Greek Prime Minister Alexis Tsipras moral support and long-term cooperation but no financial aid on Wednesday, leaving Athens to fend for itself in resolving urgent debt problems with Western creditors.
The leftist-led Greek government, at loggerheads with its euro zone and International Monetary Fund creditors, risks running out of money within weeks unless it can reach a new cash-for-reform deal.
"The Greek side has not addressed us with any requests for aid," Putin told a joint news conference after Kremlin talks. "We discussed cooperation in various sectors of the economy, including the possibility of developing major energy projects."
Tsipras added: "Greece is not a beggar going around to countries asking them to solve its economic problem, an economic crisis that doesn't only concern Greece but is a European crisis."
* * *
But HSBC notes that while this repayment is good news, the real crisis point looms in May...
Threats and promises continue...
Responding indirectly to a warning from European Parliament President Martin Schulz, Tsipras said: "Greece is a sovereign country with an unquestionable right to implement a multi-dimensional foreign policy and exploit its geopolitical role."
Putin said he understood that Greece, which has historical and cultural ties to Russia, had been forced to go along with the policy and disavowed any attempt to use Athens' debt woes to drive a wedge among EU nations.
"I want to assure you that we do not aim to use any internal European Union situations to improve ties with the European bloc as a whole. We want to work with the whole of united Europe," the Russian leader said.
And Greek FinMin Varoufakis had the last word this morning, jabbing back at The Troika Institutions...
- *VAROUFAKIS: `MORALIZING' FINGER POINTING WON'T FIX GREEK CRISIS
- *VAROUFAKIS: NEW EURO INSTITIONS OFFER UNSATISFACTORY SOLUTIONS
- *VAROUFAKIS SAYS MUCH WORK TO BE DONE ON EUROPEAN INSTITUIONS
“The institutions created this asymmetric union will then have to come to terms with it, have to deal with it,”
“The big question is:
under the current institutional framework, and given the institutional changes, can we pat ourselves on the back and say that we’ve learned the lessons of economic history to deal with legacy problems and avert future problems?
I shall submit to you my very simple answer: no we haven’t.
We have much work to do," Varoufakis says
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Blah blah blah
At this point I am just waiting for the dark grey box at the top of ZH:
"Greece Officially Defaults"
without paying the IMF first? that thing that is sometimes called "US Tax-Payer Money" (usually when it lends, not when it cashes back in)?
methinks - and I might be wrong, but I don't think so - you have to wait a bit
After the IMF has gotten it's funds back, what is left is one quarter on the markets and three quarters in the hands of the european entities, be them the ECB and select european countries
Then the whole thing will be a "mostly european affair", and then the whole political and diplomatic dimension... shifts
Greece's government had a very strange moment when they seemingly contemplated giving the IMF the finger, and finding out that they want to keep their seat and membership in this institution
Note that Mr. Putin did not advice Greece to exit any european club, be it the EU or the eurozone. In fact, there is a strong Russian interest to "just gain friends" inside it
and so Mr. Tsipras is "valuable" as what he now is: one of the EuroCrats, with a vote in the EU Council (on behalf of the Hellenic Republic), the steering and ruling body of the EU
politics is a bit more complicated when you have many polities. a funny video to that: "The EU explained". Crazy? Well, have a look at this one on the UK and this one on the US
you don't think so? then you'd have to explain why neither the US nor the Russian Federation nor China are that crazy about bailing out Greece... from the "EU suckers"
btw, "thanks", Vampire Squid Firmly Attached To The Face Of Humanity
Even a payday lender collects once a week.
The imf wants to get paid every three days......
well, the IMF is what it is. including the "sister" institution to the World Bank
whereas China is setting up it's own WB... and Uncle Sam is angry that all sovereigns - including western allies - want to be "in"
which will, eventually, lead to either the US Congress - actually the US Republican Party - to either stop being fundamentally against any IMF reform or...
... watch how China will set up it's own "IMF-like" institution, with all sovereigns that count scrambling to get in that institution
----
btw, can't claim I really know much about the inner politics of why the US Republicans are so dead against all international institutions. the international ramifications are way simpler
"without paying the IMF first? that thing that is sometimes called "US Tax-Payer Money"
I'm sure they explained to Tsipras and YV all about the United Fruit Company, Arbenz, etc. etc., just to make sure they understand.
@ghordius
i like this one
https://www.youtube.com/watch?v=rE3j_RHkqJc
lol, im a good germ
And afterwards, the dark grey box : Germany, after being done with europe (having sucked it dry), points east.
I understand everyone's wish to finally read about some familiar-sounding events, in order to quell the schizophrenia which is a natural consequence to anyone reading the news these days.
However, I think that the Grey Box will have slightly different titles for some time to come. You (and I) should look for different remedies.
I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.globe-report.com
"Tsipras added: "Greece is not a beggar going around to countries asking them to solve its economic problem, an economic crisis that doesn't only concern Greece but is a European crisis.""
Yes, a European crisis.
Most EU countries are struggeling one way or another so stop asking us for more money !
Greece is NOT asking anyone for more money, (i.e. debt). They have clearly said that.
What Greece really needs is a plan that is *affordable* for repayments of existing loans, without totally destroying the whole Greek economy. That has now been stated many times by the present Greek government. Greece is physically incapable of repayments at the current rate.
The last thing Greece needs or wants is more debt on top of the existing debt.
oh, a plan? well, there is one. it's called... balanced budgets
it involves talking about taxes and expenditures, among them those for payments of interest on debt and eventually perhaps even debt
but Mr. Tsipras and Mr. Varoufakis prefer to point at "the debt". the thing is they do not like balanced budgets
now be frank and tell me if you know how much debt and payment of interest on debt and repayments to the IMF are going to figure in the context of the Greek budget of 2015
Ghordius, balanced budgets and fiat don't mix..as you understand. guns and butter era. no no today it is
continue wealth transfer to criminal elite first then other needs of .gov second. the age old quandry of rulers:
how much to bleed the people and still keep your head on your neck.
overmed, balanced budgets is what Germany, France, Italy, Spain, Portugal, etc. etc. are getting to
see it as a prep move on sovereign scale, if you prefer. with treaties
evidence: this year, european sovereigns will add only 500 billions to their debt. read the ZH articles that say "it's too little"
don't take bankster's propaganda at face value. it is possible to balance a budget despite fiat. it's only a question of political will, the scarcest resource on the planet
It has been stated the US runs germany's gov since the end of WWII..the illusion is that the german and EU public have any say in all of this. Your EU is changing color via mass immigration and with this color change everything you stand for will be gone. Open borders across the western world-the death of white privilege and values.
I know that this has been stated. those are in many ways American points of view, reflecting in many ways American issues... sometimes intermixed with specific British issues
including, for example, this myth that the EU has a shared border/policy when it comes to immigration of non-europeans
or have a graph explaining it: http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2015...
When did they say they don't like balanced budgets? They would prefer to run balanced budget, and agreed to 1.5% primary surplus.
Haircuts, debt forgivness, war repatriations (well only Germany in this case) all costing other countries and institutions.
That's asking for moe money in my eyes.
O and they DO want the next bailaout tranche or don't they.
If there really was a government that was NOT asking for more money every passing year(whether it's debt or taxes or whatever they can get their hands on), they would never be able to buy the votes for the next election, so they would not be a GOVERNMENT pretty soon. Typical reductio ad absurdum. Therefore please don't believe what they say so easily.
Yawn...
how the mighty have fallen ... the pioneers of Greek-style penetration surely started the whole thing by being on the sending side at times, these days all their focus is on the bending side
Ah you beat me to it
Which is, "Any ending is better than a mending".
So what did they pay it with?
Well the Greeks did invent anal sex...
... which seems to be something that obsesses you?
I thought it was the only method of contraception permitted by the Vatican.
Whoa who took the jam out of your donut?
I have a typical european dislike for attributing anything that even remotely looks negative to a whole People or Culture
this does not mean that I am not willing to trash any individual that thinks that he is witty by pointing out "who invented what", which in this case is anyway immature and inaccurate at best
so on behalf of the great Greek Nation and Culture: "go and invent something yourself... if you can"
this used to be a great blog commentary section. you, my dear, seem to belong to those who think it's something like a public lavatory to scribble on. kindly... don't. do you have something intelligent to write? then do it
Just a little humor old boy, just a little humor. Didnt mean to offend anyone or any culture. Hell, we bash American culture here all day, no one seems to have a problem with that, because most of it is justified. I am sorry if I offended you or anyone else, it wasnt my intention to do so.
Why are you writing a book?
Nah, just a taxpayer in the EU, with a mortgage to boot
Ding Ding DIng! Everything I saw was they did not have anywhere close to this kind of cash so yeah WHERE DID THEY GET THE DOUGH. GIven that this has been pitched as the aw shit moment and the domino'e start falling....Does anyone think some fraud is involved here?
please highlight this question folks!
The whole damn thing is just a drama.
Forget about next month or the month thereafter; there is never going to be any Greek default. They are all in the same group of people, the group under the Rothschilds.
Everything about Greece is just a show. Hey Greece, you really want a default? Really? Varoufaki, you really want a default? Then I have just 4 words for you. I FUCKING DARE YOU! You're just a yes-man of the Rothschilds. Everything is just a drama. I've seen this before since several years ago.
If possible, I am willing to bet everything I have that next month will be NO DIFFERENT. I am willing to take 1000x leverage to bet that next month will be no different.
"next month is a different matter." Oh, yeah? Really? Fuck you. I dare you. I dare you that it will be different and I am willing to bet everything on this. I FUCKING DARE YOU, you bunch of Rothschild yes-men sinners.
They could end up being pulled over for non payment and have an army of white jackets take them to the coo coo nest.
Greece has not collapsed because Europe is massaging her like a patient in palliative care. Slowly slowly she is dying and only the occasional whimper of her people can be heard. There has strangely enough not been a societal explosion as yet strong enough to shake the status quo.
When you cut off food to a human being automatically you will have a riot on your hands but when you cut off the food gradually and very slowly you will weaken them to the point of starvation without them having the strength to fight back.
This is what the puppet masters are doing.
Peter Pan, "When you cut off food to a human being automatically you will have a riot on your hands but when you cut off the food gradually and very slowly you will weaken them to the point of starvation without them having the strength to fight back"
very... evocative, this "food and starvation theme". are you sure you are still talking about Greece? the same country that wants to export food to Russia? But it's caught into this quandary of trade sanctions and counter-sanctions?
Ghordius I think you may have misread what I have written. I am not implying that Greece does not have food. I am implying that Greece is being gradually strangled economically.
The food was only meant as an analogy.
Peter Pan, I thought so. You know the most important Greek industry? Tourism
I could argue that anything negative written about Greece that might lead to less tourists this summer contributes to this "economic strangling"
I refer to my other comments in this thread: the real conflict is not about debt, as the Greek government says. it's about the Greek budget
Instead of daring him, why don't you buy Greek government bonds at over 20% with 2 years left to run? If things go as you're so sure that they will, you can make over 40% in 2 years and a real killing with leverage.
"The whole damn thing is just a drama."
Yes, until the day they want to collapse the market - then things begin to change.
I'm with you, but wuld like to know how the Greeks can avoid a default.
Greece and it's relentless drama of "We won't pay", "We have paid", "No, we are not going to pay this time", "Yes, we have paid", "This time we will really not going to pay", "We have paid", "NO! No more paying", "We have paid", "We are going to default in this", "We have paid", "We will default", "We have paid", "It's gonna BLOW!", "We have paid", "It's really gonna BLOW!", "We have paid", "NOOOOOOO!", "We have paid and now Greece is now officially under the ownership of the Rothschilds. Thank you for watching."
"A central bank official, according to The FT, said that Greece has repaid the €450m it owed the International Monetary Fund today."
In other news, children were playing with unicorns at a local park.
Forget about EUR460m owed to the IMF.
Even if the figure were EUR4,600 trillion quadrillion, the outcome will still be the same - "We choose to default. Nope, we changed our mind and have paid by the time you read this."
EUR460m.
EUR4,600 trillion quadrillion.
EUR9,999,999,999 quadrillion^quadrillion.
Makes no different.
Things will remain the same, until the Rothschilds crumble.
Europe and the whole world has become dysfunctional because there has been the development of an imbalance betweent the productive and the speculative/financial sectors of the world, a growing demographic problem, a debt problem which has nowhere to go except to compound, power rivalries between major powers that consume an inordinate amount of resources in wars and beefing up "defence" capabilities and a pointless concentration of wealth in fewer and fewer hands while the middle class is going the way of the dodo.
So Greece is just one of the many canaries that is looking more and more like a black swan and even if Greece could be forced to fly upside down, it won't stop her from shitting on Europe at some point in the near future. At that point the others are prone to follow.
"there has been the development of an imbalance betweent the productive and the speculative/financial sectors of the world"
And the poster childs (children?) for the latter syndrome are the USA and Britain. Manufacturing hollowed out, financial engineering taking its place. Same thing happening even within enterprises. Think of (betraying my age here) great technology engineering companies like Digital and HP. Built to be world beaters by brilliant engineers and researchers who came to be replaced by marketers and financial acrobats (think Carly Fiorina).........and destroyed as a result.
How Putin Prepared for the Big War
http://m.youtube.com/watch?v=74vVyCorxiE
Should be required viewing .... for all the Putin lovers around here .... the Russian trolls are exempted .... so, why do you call yourself "forputin" ?
I am so glad to hear that the CIA's check to the good doctor has cleared.
Hey, Putin .... real friends know .... when their friends are hurting .... they don't wait to be asked ! Tspiras .... what you're doing is .... aggressive begging .... bordering on extortion ! Fucking 2nd rate circus clowns !
this is a payment to IMF. That can be whatever you want it to be, and it could be a complete fabrication, hushed up to keep markets in the saddle.
Next week is payment to private investors, and that could be a bit more difficult to make pass unnoticed.
At the moment I don't trust anybody. A stokmarket that roars higher day by day, gold that falls when it should rise and new maths, where we all get richer by printing money. What's there not to like?
Smoke and mirrors and a big crash bang around the corner.
dragged out to the bitter ending. greece is the poster child for what could best be described as almost every western country. debt ponzies sucking the life and liberty out of its citizens.
bankers are the equivalent of a lamprey attaching to the host. once the vital fluids are suckered out, the lamprey grows in size and seeks another victum. the victum becomes worthless carbon.
that's all we are to them, labor(fluids), being sucked til we die. enjoy the day and avoid lamprey institutions. be debt(lamprey) free. signing a loan document is like attaching a lamprey to your body.
+100
It is a waste of time to ask Putin for funds, as they are themself in a bid of trouble. There is one way that Russia could get more funds and that is an idea borrowed from the western Central Banks. They lease out Gold, yet Russia is a buyer, but what they could do for funds is lease out Nukes. They have plenty of them, more than they need to carpet the World and by leasing them out it would give Counties like Greece some extra Ammo in regards to Germany not wanting to pay their WW2 debt.
As usual, the "real crisis" is just down the road. What a bunch of Kabuki bullshit.
receding horizons...in perpetuity apparently.
Are there further IMF repayments after August?
maybe when there's no more IMF repayments is when things will come to a head
so far it seems they are willing to go along with the IMF and don't seem to want to go along with the Eurozone
Of course they paid the IMF.
The Greek gov asked the IMF "Why are you moving all your staff out?"
The IMF replied, "Because if you don't pay us we're gonna bomb the shit out of you and blame it on ISIS, Russia, Iran, hell we could blame it on the Klingons and the dumb plebians would believe us. So...The decision is yours."
I'll say it once more: Nobody's going to leave the euro. Not Greece, and not anyone else. But years from now there will still be articles about a Grexit "real soon now".
11%.
Its hard to imagine that the USA (1980) was in much worse financial shape than Greece is today. I had no idea the country was on the verge of economic collpase.
offered Greek Prime Minister Alexis Tsipras moral support...........
The question is not where did they get the dough. It's WTF would they hand the dough over to the IMF.
Greece is buying time on a deal with Putin until June when the decision to extend Russian sanctions, which must be unanimous, can then be vetoed by Greece. To default and create chaos with the possible expulsion from the EU before then would prevent Greece from ending these sanctions.