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Greek Bonds Tumble On News IMF Rejected "Unofficial" Greek Request To Delay Payment
On Wednesday, reports out of Germany indicated that Berlin was drawing up plans to keep the Greek banking sector from crumbling in the event Athens missed one or more of its upcoming payments to the IMF (i.e. in case Greece defaults). Yesterday evening, we went on to highlight a UBS note which cautioned investors not to use bond yields as a proxy for contagion risk because monetary policy has served to strip sovereign spreads of any meaning when it comes to price discovery and conveying risk to investors. It’s bank runs triggered by depositors’ conception of redenomination risk that are the real fear and a Greek exit could well cause periphery depositors to “take it to the mattresses” so to speak.
Today, we learn that earlier this month (so around the time Athens was busy denying reports of an imminent default), Greek officials floated the idea of delaying payments to the IMF due shortly after the government runs completely out of cash at the end of April. Here’s more via FT:
Greek officials have made an informal approach to the International Monetary Fund to delay repayments of loans to the international lender, highlighting the parlous state of Greek finances, but were told that no rescheduling was possible.
According to officials briefed on the talks by both sides, Athens was persuaded not to make a specific request for a delay to the Fund, which is owed almost €1bn in two separate payments due in May.
Although Athens was rebuffed, the discussions, which occurred in private earlier this month, are a sign that the Greek government is finding it increasingly difficult to scrape together enough money to continue to pay wages and pensions while meeting its debt payments to external lenders.
Yields on Greek bonds soared on Thursday following the news, with yields on three-year paper rising 134 basis points to 25.10 per cent, the highest since the country’s restructuring. Its 10-year yields climbed 45 basis points to 12.18 per cent…
MF officials have repeatedly said that a rescheduling of repayments can only come as part of a completely renegotiated new bailout programme. Were it to miss a payment, Greece would become the first developed economy to go into arrears at the Fund, something only counties like Zaire and Zimbabwe have done in the past…
One source briefed on the approach said the proposal was to “reshuffle the repayment schedule for the IMF loan over the coming months,” allowing the new Greek government led by Alexis Tsipras to have the money to pay bills for pensions and public sector salaries while negotiating with European creditors over payment of the next tranche of bailout loans.
So it’s either pay salaries and pensions or pay the IMF which is tragically ironic because Athens has already gone the route of plundering pensions to make payments to its creditors, the only difference is that now, instead of “borrowing” money from the public coffers and hoping to pay it back in the interim before anyone actually gets shorted, you’re talking about simply not paying people at all (or paying people with IOUs which would be the hilarious rough equivalent of conducting repos with individual citizens) which needless to say could turn into an untenable social and political issue virtually overnight, not to mention the fact that if the government defaults you would almost certainly see the imposition of capital controls in order to stem the inevitable deposit flight. Athens owes nearly €2 billion in public sector wages and pensions at the end of the month.
As a reminder, here is the creditor repayment schedule:
Meanwhile, Athens is looking at “creative” ways to boost liquidity such as the following scheme to “exploit” church property (via Bloomberg):
Greece to set up special committee to investigate possibilities of exploiting property of the Greek Orthodox Church, PM Alexis Tsipras says in letter to Archbishop Hieronymos today.
Revenue will be used to boost country’s liquidity: Tsipras
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And on the one-year anniversary of the Greek 5-year bond (which you'll recall attracted voracious demand):
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When did the Greeks roll over 1.4 Billion? Yesterday? Did I completely miss it?
Mr. Varoufakis, the Greek Finance Minister, does not want you or anybody else to look too much into his trick bag
It's part and parcel of his strategy, which again is based on his views on Game Theory, which he lectured on in Australia
remember, he does not like "markets" as such, nor trust them, nor would he leave them be, if he could
Bullocks. The Greeks didn't roll over 1.4B€ yesterday.
Capitalism, nothing short of astounding.
This isn't capitalism brosef. This is the inbread Arkansas-Mississippi red-headed step-child thereof.
Wait....what?
Not even a little sugar from orange lady?
Gold .... "Live cat bounce" .... Greece .... "dead cat bounce" followed by kicking cat down the road !
I will gladly pay you Tuesday for a hamburger today. Running out of corners to hide in.
Throw the Greeks out of Europe already.
Do they raise laughing squirrels over there? I think I seen one passin through recently.
You still believe in "trick bags"? What an asshat.
take your meds, or whatever you do to be less grumpy, will you? they improve your comments
I did not state that I believe in trick bags, I stated that Varoufakis believes in them. Which is relevant, in this context, and led to many funny discussions, in Brussels
Your comment was fucking stupid, yes, I agree. Insolvency is what it is. Let us know when Brussels sends in the repo men.
while your comments are all of the best quality, and smell like roses, as your farts, of course. my farts lack this quality, they smell like old parchment
I see that comments recently go into "Insolvency!" and "Repo Men!"... without any detail. as a matter of faith. sorry, but the devil is, as always, in the details
funnily, I still find you interesting to read, and I still sympathize. but man, you are grumpy, in your "ZH Persona". I'd guess you can't be grumpy in your everyday environment
Wait!? What!?
Now the Greek governmant want to seize Church property to make payments!?
WTF!! It's all over. Forget anything else happening now.
The Germans were right making this video about V:
https://www.youtube.com/watch?v=Afl9WFGJE0M
Have you not paid your taxes around here latlely, that's what happens.
Actually it was the Archbishop who offered help to Tsipras on Easter Eve. Notice he never offered help to ordinary Greeks (since they are only good for sheering and thusly referred to as "a flock" by their spiritual fathers).
The help offer appeared mainly because in case Greece defaults and imposes capital controls it will be the corrupt BMW-driving clergy that'll suffer the most.
Go ahead, Break My Windows. You feel lucky? Well do ya??
Lord have mercy on the working man....as long as he's got a job.
There was a brief article on ZH about it a couple days ago. Or maybe it was a Troika loan payment they made. Whatever. I commented how utterly bored and indifferent I am to this whole mess after years of being dragged through Greek default/Grexit stories. Which is still my state of mind on this matter.
Yeah, it is drawing a huge yawn, not just from those of us who follow this day in and day out, but a simple "comment count" on the GREXIT stuff indicates it.
I wish they'd just blow it up already, but then again, more time to stack seems like a great deal to me.
well, aren't you attracted to the Greek news because you somehow wish that "something breaks"? TEOTWAWKI? look at this comment, I think it's in the same category
so I have to give you, dear Haus, big kudos for at least explaining to me why you wish the Hellenic Republic to suffer a default
the only thing I regret is that you think it wise to put everything in gold. it might be, particularly if things turn out the way you think, but historically it's never been wise to put all chips on one possible result
own gold. personally, privately, discretely, physically. but don't ever let gold own you
as many things, it is a good servant and a bad master
seriously, it's terrible to read comments from people that talk their book, I mean their stash, in the most hating way. The Demon Mammon, the sin of Greed and the epithet of Miser come to mind
don't sully yourself. only a well-meant advice from Uncle G
You're so right Ghordius. I knew it from the moment I saw, to much of my surprise, many ZHers cheering for Syriza, a statist/communist/keynsianist Frankenstein party, even before the elections, in the (not explicitly expressed) wish that they would bring the long-awaited collapse of everything and the enrichment of the gold hoarders. I do see that a collapse at least for Greece is closer than ever, but to me being controlled by greedy goldbugs (newly enriched) is not an improvement over being controlled by a greedy government, they are the same brand of shit in the end of the day, and their greed calls their shots.
Taken over by goldbugs? LOL!!! What an idiot. How many people per capita do you think hold physical gold?
All I see is the arrogance of man clashing with the laws of Nature and physics...
guess who wins?
Tick tock motherfuckers...
I fail to see where "getting taken over by Goldbugs" even comes from.
Do I look forward to buying a few nice Villas in need of a good renovation for pennies on the dollar when liquidity dried up with AG and AU? Definitely.
Does this mean I want to take over some country? No, I just want to take advantage of everyone else's blind faith and stupidity in the current FIAT system.
Buying Real Property at lows with AG and AU at highs which I purchased at lows is my plan.
that's what I mean: you envision one future, and put all your chips on this one specific possible outcome
a friend of mine had exactly the same thought. in 1971-ish, btw. and doubled down in 1974, pointing out that "Now Americans would finally be free to buy and own gold!", and that would spell the end of the Mighty Dollar. I now manage his (you would not believe it's size or location) stash on behalf of his posterity, then the world he expected to come did not in his lifetime
I sometimes think he'd be still with us if he would have put his passions elsewhere
I still have his words in my ears: "G, that EUR of yours will never get started! "They" will kill it unborn!"
Ghordius- Gold comments aside, I'm not bored because I'm waiting for TEOTWAWKI. I'm bored because it's been obvious since the early days of this Greek saga (now longer than Homer's 'Odyssey', I think) that a nation that far in debt and not in posession of a printing press for their own currency, was toast. Either the debt was going to be written off, massively restructured or defaulted on. There are no other options. Watching the game, no matter how skillfully played or for how long, is pointless when you already know the limited range of possible outcomes.
You, and anyone else, knows shit.
You obviously have not looked in the mirror lately so that you can see YOUR arrogance. You don't care how many might die, as long as you get your dream come true. How does that make you different from the psychopaths who were or are in power and slaughter millions of people to further their interests? Yes, of course, you haven't done anything wrong to anyone, but greed and arrogance are the same to me whether their bearer is rich or poor.
http://www.scientificamerican.com/article/multifractals-explain-wall-str...
Answer: The litigator with the most Petrodollars?
:|
All of us will probably be long dead before the ROLLING OVER stops.
We defaulted to some IMF folks.
We jailed some folks.
I would say that if you move the goalposts...you have defaulted....watch the PTB try to stay away from that word....even when Greece does not pay they will never say they have defaulted....
Lets review:
Who actually comprises the ISDA Board of Directors?
Exactly!!!! The criminals and sociopaths in charge of the ongoing fraud will never indict themselves.
Obviously you banged your head one too many times on the goal line before relizing, we better move the goal posts.
Medievel times, plunder the churches.
Time to warm up the press and bring back the Drachmas for a bit of Antonopolus Helecopter manuvers, and construct a new Russian Naval base. #itsallbeendonebefore
http://www.dailymail.co.uk/news/article-3038621/More-2-MILLION-Hillary-C...
Hope you didn't waste much time on her, she's not worth much time nor does she have much time.
2 MILLION of Hillary Clinton's Twitter followers
When it comes to IT stuff.....those guys can do some magic crap.
http://www.zerohedge.com/news/2015-04-15/dratghi-attacked-protester-ecb-press-conference#comment-5994283
Put Lagarde and Draghi in a ring and let them fight it out over who eventually takes ALL of Greece's money.
Hell, I'd pay to watch that.
The pre big bout build up fight could be between Yellen and Mike Tyson, for no other reason than I'd just like to see it.
Lagarde would win in two secs. In fact, the IMF has already won, and takes precedence
then after all, there is a different, often used way to call the IMF: "The US Taxpayer Money"
LOL!!! What did the IMF "win" exactly... "The US Taxpayer Money"? LOL!! Here, have some more paper promises...
it's power
whatever you might call the Mighty Dollar, the Federal Reserve Note, it is power. now
most probably not in a hundred years, perhaps before that, but now and today it is power, including, among other things, purchasing power
Put Lagarde, Draghi and the ECB protester girl topless.