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Greek Deal On Monday "Not Possible" MNI Reports Despite Troika Attempt To Reconcile Differences
With the crucial May 12th €774mm Greek IMF payment looming (and thus even more critical May 11th deadline for the Eurogroup's decision to release around €7bn in additional funds to Greece), the much-discussed 'splintering' of the Troika (The Institutions as the Greeks would prefer we describe them) appears to be gradually un-splintering. Today's statement from the EU talks that the members of the Troika "share the same objective" may reassure some after the 'limbo' of serious disagreements between the European Commission and The IMF. However, with various 'red lines' remaining unaddressed, EU sources say a deal on Monday is not possible.
The statement is unequivocally designed to suggest everything is awesome in the Troika and they have all made friends again...
Though we suspect the many varied 'red lines' of The Institutions are anything but settled...
"Serious" policy differences between Greece's two major lenders - the European Union and the International Monetary Fund - are preventing the country from reaching a compromise with lenders, a Greek government official said on Tuesday.
"The result is that the institutions have red lines everywhere: pension, labour (IMF), and primary surplus (Commission). Against this background there cannot be a compromise. The responsibility belongs exclusively to the institutions and their weakness in coordinating"...
The Greek official said the IMF was being insistent on pension and labour reforms that Athens opposes, while the European Commission was more leninent. The Europeans, on the other hand, were being strict on the target for a primary budget surplus while the IMF was less worried about that, the official said.
The IMF also wants Greek debt to made viable through a writeoff of debt, while the European Commission is against such debt relief, the official said.
But we should all feel comforted that a 3-line statement tells us otherwise... as the deadline looms.
The European Central Bank’s Executive Board discussed during their meeting on Tuesday various options for raising the haircut on Greek government bonds used as collateral in lending operations with the Bank’s Emergency Liquidity Assistance facility, senior Eurosystem sources have told MNI.
The sources said that even though the Board did not reach a final conclusion, it will review the various options during Wednesday’s Governing Council meeting, at which, besides considering the question of whether to hike ELA for Greece, members will be called to vote on whether a haircut should be decided today or in the next weeks.
If the necessary majority is found, then the decision will be communicated in writing around 21:00 CET Wednesday evening, one source said.
A Greek banking source commented that a possible raise in the haircut by 10% would be tolerable, but a 20% raise would make the credit facility of the Greek banks quite difficult and wouldn’t be sustainable for many weeks.
With the punchline being...
Apart from that, the Greek officials explained the liquidity situation of Greece and affirmed their desire to obtain a written statement from the Eurogroup on Monday that negotiations are progressing towards a deal. Such statement, according to the Greek side, would enable the ECB loosen its stance on Greece.
However, multiple Eurozone sources have told MNI that a deal on Monday is not possible and that the two sides are still quite far from reaching an Agreement.
Which we suspect explains the baord-based derisking in global risk assets as uncertainty is looming and ECB support waning.
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OK William. That's Monday. Does Tuesday look any better?
Euro +1,35% today, so I guess we are heading in the right direction.
Tuesday:
https://goo.gl/y4WlSB
Such a "bright" future, Doc.
I'm gonna make a crazy assumption and say that they WILL release the e7BN on Monday
WHAT THE FUCK?????
The IMF gives them 6 billion and keeps 1 billion out of their own pocket to cover the 700 million (and then some) interest? HOW THE FUCK did Greece pay 200 million to IMF today? Right, the IMF says they paid because the 200 million is part of the 7 billion minus 1 billion tranche.
Ah, I'm stupid.
DEFAULT ALREADY YOU MOTHERFUCKERS!!!!!!!!!!!!
hey, take it easy ...none is going to let them default there is too much at stake; as a german you should know better...
here is smt for you to read. as a background, giovernment has collected all funds from municipalities, hospitals, state owned enterprises, pension funds to pay the loans; salaries, pensions are cut by more than 50%. that was the deutch austerity formula or whatever they want to call it ...
http://www.kitco.com/news/2015-05-06/Greece-Pays-Over-220-Million-To-IMF...
Here's idea and I won't even charge Geece for it: DEFAULT!
That one is on the house. If I have to tell you again I'll charge you my standard fee of two and twenty. Plus I'll have you throw in a couple of your hot Greek women.
that is what Varoufakis wanted, and got sidelined as demanded by Brussels.
I doubt it will be allowed to happen because it effects trillions in derivatives, thats my bet anyway.
Greece just paid today 200 million in interest to IMF. So far this year Greece has paid over 8 billion dollars.
http://www.kitco.com/news/2015-05-06/Greece-Pays-Over-220-Million-To-IMF...
ALL GERMANS WHO ARE MAKING A HOLIDAY IN GREECE ARE FUCKING STUPID!!! They think they're "helping" the Greeks.
GET A FUCKING CLUE KRAUTS!
germans making holidays in greece are regular, good people, the same as regular. good people in greece ...
Germans making holidays in Grecce are regular, stupid idiots. Let´s just wait till they default and buy up what has some value for cheap.
Throw those stupid, pathetic Greeks out of Europe already.
“Never argue with a fool, onlookers may not be able to tell the difference.”
I would bet that Greece is trying to sew disharmony by trying to make individual deals.
Just because you have an "expert" on game theory does not guarantee a "win".
A "win" is guaranteed if they don't pay.
Greeks: "You can't kill us because we're committing suicide"....
This is a really bad soap opera.
Mark my words, Greece will surrender completly in a couple of days.
So noted.
Greece is the new France.
I don't remember the Greeks ever smelling as bad as the English and French back in the 70's.
I think maybe France is the New Greece ?
This might mean Greece could default. Say it ain't so.
None will risk default. Varoufakist was warned and got sidelined.
Varoufakis is the only official Greek I'd share a meal with right about now. He is way cool and interesting to talk to.
he is a member of the gov. and apponted by PM.
obama comes to mind, when the commission on health insurance reform was formed out of 16 members NONE was a supporter of the single payer, which is the system working on the rest of the world including uk, canada etc.
my point is that this appointment shows bones by PM as well ... will see how all this further develops, however, i would not underestimate the forces working against them, au contraire, my bet is not with them.
There will be no defaults, even if there are defaults:
Ratings agencies say no default if Greece misses ECB, IMF payments
http://www.reuters.com/article/2015/05/01/us-greece-default-ratings-idUS...
they will reach a deal,they always do.
None will take responsibility and take the risk of all the derivatives that can explode.
it is all talk to scare off the weak hands ...
Next negotiating tactic I'd use if I was Greece: "Why don't you three come back after you get your shit together."
OMG...that old chevy! lol and is that the school teacher running in the Birds movie?
This just in, Nickle can bail-ins for all Greeks.
Things are not that bad I guess
Rolex rioters? Expo Milano 2015 anarchist photographed wearing '£5,000 watch'
a tragicomedy with no happy ending for the greek people
Buzzie, there's no happy ending for anyone as long as the moneychangers are allowed to run our lives!
Anyone with any idea about economics or business..cant sit down and within 30 minutes figure out Greece has no way of paying back anything.....their income is 10 cents and they have a $3,000 bill......so what are they negociating other than another nice free lunch.....and a stay at some exppensive hotel to set up another meeting....its all stupid...Greece is broke...and any money you give them does not do a thing for them....or for you....its really stupid from here on out...this game is over.....its just the announcers are still calling the play by play.....but the teams are doing nothing....and the score is 400 to 0....its over folks...
LIST I
11 May 2015 Last change to release €7,000 million/€7 billion from ECB
12 May 2015 €0,774 million IMF
05 June 2015 €0,310 million IMF
12 June 2015 €0,348 million IMF
16 June 2015 €0,581 million IMF
19 June 2015 €0,348 million IMF
30 June 2015 A four-month extension on bailout agreement expires.
13 July 2015 €0,465 million IMF
19 July 2015 €0,199 million ECB Maturity Gov't Bonds
19 July 2015 €0,104 million ECB Maturity Gov't Bonds
20 July 2015 €3,500 million ECB Maturity Gov't Bonds
Source: Top
LIST II
08 May 2015 €1,400 million Greek T-Bill redemption
11 May 2015 Eurogroup meeting (final deadline for reforms)
12 May 2015 €0,763 million IMF
15 May 2015 €1,400 million Greece T-Bill redemption
31 May 2015 €2,500 million Greek pensions/wages bill
05 June 2015 €0,312 million IMF
12 June 2015 €3,600 Greek T-Bill redemption
12 June 2015 €0,351 million IMF
16 June 2015 €0,576 million IMF
18 June 2015 Eurogroup meeting
25 June 2015 EU leaders summit
30 June 2015 €2,900 million IMF
12 July 2015 €2,400 million in Greek bills matures
20 July 2015 €3,500 million ECB Maturity Gov't Bonds
20 Aug 2015 €3,200 million ECB Maturity Gov't Bonds
Source: https://pbs.twimg.com/media/CETnPt7WIAAAlTV.jpg
At this point, I bet a million fiatskis that this whole timeline etc is all just bullshit.
The money will come from IMF or ECB to pay each other.
WHAT IS A CIRCLE JERK AMONG FRIENDS?
where is the difference with all other circuses/countries ? thats how the system works ... wash, rinse, repeat ... yes, we will have wars too as part of the new cycle
But it's never been this obvious before. This makes absolultely no more friggin' sense to anyone. Feels like just before the Big Crash in '29 when the music finally stopped for a very long time.
Right up until then, people were all happy smiles and dancing the Charleston. Most beautiful and most expensive houses, cars and yachts then as well. All went to crap and everything went for pennies on the Dollar soon after.
The day will come and it will come sooner than many here think. People are way too happy and complacent right now.
So what happened about this Russian pipeline option ??
Russian money is conditional on first defaulting on the IMF.
The Greek public opinion polls some weeks ago showed those strongly opposed to the government's pursuit of a deal with the Troika up into the 40-percents (43%?) from twenty-something a few months earlier.
With anger and disgust at the Troika's refusal to budge on debt renegotiation or its demands for slashing pensions, wages and public employment, and with the pain of the depression continuing to build, when that number gets solidly over 50% Tsipis will have his mandate. Now, with the starkness of the choice plain for all to see, the sides are just manouvering to try to get the other to pull the trigger and take the blame.
Syriza and its member parties (and the Communists too no doubt) have been using this period to prepare their members and constituents and the Greek people and institutions generally for what will be an intense, dangerous, costly but heady struggle. They have been lining up alternative international partners, reaching for friends in the armed services. No doubt they have been intensively negotiating with leaders of other parties and dissidents within them to join in a broader National Unity government. With the middle ground gone, some parties may split into patriotic and Empire-loyalist branches.
The Empire with all its agents and lackeys has no doubt been preparing for this struggle as well, laying plans for sowing ever more chaos, for triggering a color revolution, and organizing and funding their partners in the Greek military.
Just about every institution in play here - including the Empire itself - is also under internal stress, and the crisis could produce some huge surprises. It could very quickly also become part of the growing international polarization between the Empire and Eurasia.
It's a great show. ZH isn't perfect but it's a great place to watch the action unfold!
I wonder if they are printing a new currency.....that would be good to know....that takes time and you would have to make that decision way before you default for the first time...
IT APPEARS THAT THOSE WHO FAIL TO DISTINGUISH RIGHT FROM WRONG ALWAYS END UP IN THE RIGHT - NO DEFAULT
WHAT WAS RIDICULOUS ... was the idea that Greece would ever be able to pay back these loans. AND THIS SHOULD HAVE BEEN OBVIOUS from the get-go.
The whole idea of loaning substantial money to Greece, and then ramping these loans up to astronomical levels, was ABSURD from the very beginning. Don't ask me to feel sorry for the Troika or the Europen banking system. If you make IDIOTIC loans to people who can't pay you back, then the outcome speaks for iteslf. This entire dog and pony show is a travesty.
WHAT is interesting- is that certain Wall Street banks may have been part of the intial deal for the loans. In other words, they were a player during the conception of the Greek Loan deal. Don't expect me to believe that these Wall St banks are idiots, because they are NOT! Obviously they KNEW all along that Greece was a bad risk, and the chances of a long-term default were very high. Therefore, they have arranged their trades to PROFIT from the whole debacle.
Sad beyond belief. The whole system is sad beyond belief. If you treat the whole world as i they are "Muppets", then DON'T be surprised if one day the entire global financial system has a major hiccup. And DON'T be surprised if your own derivatives deals don't NET OUT. Because they won't!!!
No one in those meetings expected any loan payment whatsoever.
They only expect Greece to "stay in line" with the Ponzi.
That's all this fucking game is all about, but new leaders want new bribes.
And they already have nice homes in cool Athen's neighborhoods. Don't hurry, it's not so easy to make such a deal.
There is no solution for Greece inside the EU and the Euro. The Greeks are debt slaves to a debt they can never pay. How does loaning them money help? Oh! I know, it helps the idiot bankers who loaned Greece money when they should have known Greece was not good for it. Let them suffer for their bad investments. That is how capitalism works, and fuck the German and French banks. Cyprus went under because their banks had loaned too much to Greece, now let Germany and France feel the pain of foolish banking.
"Greece is in special negotiations with the Justice Department to transfer Jeff Skilling on a work-release program to help Greece with it's accounting."
On a phone interview, Mr. Skilling stated "I am looking to reconcile ny past by helping the Greek banks today"
Greece spokesman or the Justice department could not be reached for comment.