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Europe Preparing Greek Bankruptcy Loan "In Event Of Grexit"
Earlier today, we learned that, contrary to what Greek government officials had been implying for the better part of a week, Athens did not have enough money to make a €750 million payment to the IMF on Tuesday. Instead, Greece borrowed most of the money (€650 million according to unnamed officials) from its IMF SDR reserves. This money must be paid back within 30 days. This effectively means that the IMF paid itself and it sets up a hilariously absurd scenario wherein assuming Greece manages to convince creditors to disburse a €7.2 billion tranche of aid later this month, the IMF will send money to Greece, who will send it right back to the IMF to replenish an IMF fund, which was drawn down by the IMF to pay itself back for money it loaned to Greece a long time ago. Put simply: Greece has taken circular funding schemes to a whole new level.
Meanwhile, the IMF is understandably fed up and according to El Mundo, the Fund will not participate in a new program for the Greeks, something which German FinMin Wolfgang Schaeuble indicated may be a dealbreaker when it comes to structuring another bailout for Athens.
The takeaway: it’s likely over. Greece lacks the cash to keep up the facade and the IMF lacks the political will to perpetuate the farce any further. This suggests that both Greece and the creditors formerly known as the "Troika" will need to resort to Plan B. There’s a problem with that however — namely that EU officials have gone out of their way to make it clear that there is no Plan B, because to admit that such a plan existed would be to admit that the euro is in fact dissoluble after all, something which is taboo in polite discussions among European politicians. Here is but one example, via Reuters:
A top EU official urged Athens and its creditors to make progress in their talks on a cash-for-reform deal on Monday, warning there was no "Plan B" in the event of a Greek default.
"What we now need is real progress," Frans Timmermans, first vice president of the European Commission, told German newspaper Welt am Sonntag.
When asked whether there was a "Plan B" for the case of Athens defaulting, Timmermans replied: "No, there is no 'Plan B' for Greece."
That’s from Saturday. Here we are just three days later and as it turns out, Plan B does indeed exist and it is essentially a farewell package to the Greeks. here’s Bloomberg with more:
Euro-area governments are considering putting together an aid package for Greece to cushion the country’s economy if it was forced out of the euro, according to two people familiar with the discussions.
The Greek government doesn’t expect to need that help. Prime Minister Alexis Tsipras says he’s not considering leaving the currency bloc and is focused on getting the aid he needs to avoid a default.
Even so, European officials are considering mechanisms to ring fence Greece both politically and economically in the event of a euro breakup, in order to shield the rest of the currency bloc from the fallout, one of the people said.
“There is always a plan B,” Filippo Taddei, an economic adviser to Italian Prime Minister Matteo Renzi, said in an interview in Rome on Tuesday, without referring to the aid package specifically. “But you have to ask yourself who has the ability to step in, in that event. And I think if you start making up a list you realize very quickly that that list is very short.”
While euro-area finance ministers welcomed the progress Greece has made toward qualifying for more financial aid at a meeting in Brussels on Monday, policy makers are still concerned Tsipras may not be prepared to swallow the concessions necessary for a disbursement.
So on Saturday Plan B was unthinkable but on Tuesday there’s “always a Plan B,” which reminds us of the time when Mario Draghi told Zero Hedge that there’s no such thing as Plan B when it comes to insolvent periphery debtor nations getting cut off from ELA and crashing out of the currency bloc. As a reminder, here is what Draghi said: "If the Euro breaks down, and if a country leaves the Euro, it's not like a sliding door. It's a very important thing. It's a project in the European Union. That's why you have a very hard time asking people like me "what would happened if. No Plan B.”
Call it plan "B" or plan "C" or plan "contain this trainwreck so redenomination risk doesn't start creeping into the minds of Spanish and Italian depositors", but what it amounts to is a DIP loan and the very fact that it's being mentioned in the media likely means the plan has been hatched. The only remaining question is what the EU's farewell package to the Greeks will look like.
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Well surely the banks will come up with a way to pay the banks (with someone else's money, as Margaret Thatcher ironically said).
Wait.
Why would the EU "loan" money to Greece if they leave the EUR? For what benefit?
If things are shitty now, I can only imagine how bad it will get if Greece is forced to pay back its debts in EUR while using the Drachma.
That is very Reichsmark 1918 of them.
The only thing I can think of is so Greece can service its outstanding debt for a short period of time so the rest of the world can put their houses in order before it blows.
The EU loan is backed by taxpayers.
It's an offload.
The loan will be collaterized by what assets Greece still has on its balance sheet. What do they have left? Gold.
Aand it's gone!
Throw those pathetic Greeks out of Europe already.
Of course Greece doesn't want to leave the EU. Greece is exactly like the millions of people we have living on entitlements- they want the checks in the mail to continue- there is no intention of ever becoming self sufficient, as long as they don't have to.
If Greece leaves the EU and returns to the drachma, their economy will implode in the short term, likely creating a mass migration out of Greece. The EU has enough problems with migration out of Africa. The "loan" would soften the blow and hopefully stem the migration.
Why would the EU "loan" money to Greece if they leave the EUR? For what benefit?
You're still asking such questions? That astonishes me.
A:
To pay off some (!) of the Greek loans held by the European banks, to maintain the facade so they aren't forced to mark them zero!
I like these stories they really give me a hearty laugh in the morning. We really have fallen down the rabbit hole.
LTER, it looks like you fell for Thatcher's Jedi Mind Trick ("... running out of OPM").
Note that in a world of FIAT CURRENCY, FRB and Compound Interest, there is no OPM. There's only fiat Debt, growing at compounding rates.
It's true: one of the biggest failures of modern societies, is their inability to truly understand Compounding. Especially when applied to Bookie Fin Games.
The day we have Honest Money that's actually backed by something Real and Valuable, then and only then do you run out of OPM. Until then we're all just captives in the Fiat Casino.
Honest money? Bring it on, I'd say. Gold would be nice, silver an excellent second choice
But the Other People's Money issue does not vanish, with gold. everything become harder, with harder currencies
for example... foreign gunboats in your harbours. for collection. what's that word? "repo"?
So you're saying Thatcher penned that quip as a diversion from the true value of "money"?
That seems a bit far-fetched...
I'm just proud to know what a DIP loan is. I've learned some shit over the years from Zero Hedge.
My last pay check was $9500 working 12 hours a week online. My sisters friend has been averaging 15k for months now and she works about 20 hours a week. I can't believe how easy it was once I tried it out. This is what I do... www.jobs-review.com
I dunno, how does one gift-wrap a swift-kick to the balls?
Wingtips.
Some one will drop the hot potato and call it a default
Default sure but YV just gave up Greece's gold!!!!
What gold? The jews cleaned out Greece a while ago. All been repo'ed for a couple of years. Lets see 2012 as I remember. Yup...2012.
http://www.zerohedge.com/news/greece%E2%80%99s-lenders-have-right-seize-...
http://www.zerohedge.com/news/negative-salaries-negative-bailout-and-now...
All the world is a stage...some actors memories are longer than others.
It wold be naive to think that this outcome was not planned for well in advance. This does not mean it will be "pretty" but I am sure the plan is in place.
GREECE LOST THEIR GOLD!
They lost their gold years ago.
there's still a chance for the silver or the bronze, perhaps.
What is a bankruptcy loan? Sounds like a double oxymoron.
It's when the IMF supplies cash - and as a loan - in exchange for a "client" account of gold holdings.
They could put up Greek women as collateral, the ones over thirty five with the taches and hairy legs.
https://youtu.be/5oZi2fovnZQ
Greece borrowed most of the money (€650 million according to unnamed officials) from its IMF SDR reserves.
In other words Greece sold their unallocated gold account back to the proprietor, the IMF.
Exactly
"Greece sold their unallocated gold account back to the proprietor, the IMF. "
Unless I am mistaken The IMF does NOT buy Gold. Members buy and sell SDRs -which may be purchased or redeemed for Gold and/or accepted currencies.
IF that is the case then The IMF did NOT buy/rehypothecate the Gold/SDRs. The proceeds of the sale/repo of the Gold/SDRs held at the IMF were paid to Greece -which then used those proceeds to satisfy a loan from the IMF.
That is, of course, IF SDRs = Gold...which it appears is indeed the case for most 'Official reserve Assets' at THe IMF:
https://www.imf.org/external/np/sta/ir/IRProcessWeb/data/grc/eng/curgrc....
...and Greece indeed pawned/rehypothecated their Gold/SDRs to pay a loan due to The IMF...
The Gold/SDR allocation was 'purchased' by: "members with sufficiently strong external positions (are) designated by the IMF to buy SDRs with freely usable currencies "
The purchasing 'member' would also likely be 'over allocated' at The IMF entitling them to interest payments on the amounts that they are over allocated. IE: Greece has not merely pawned their Gold/SDRs; but the IMF interest payments are being paid to the member that 'purchased' the Gold/SDRs. The interest on the repo is being paid to the member that 'over allocated' member that was designated by the IMF to make the repo so that the IMF loan and attendant interest could be paid by Greece..
Greece is pyramiding the interest on it's IMF loan via the repo/allocation mechanism.
Now, who might the "member(s) with sufficiently strong external positions" be??
http://www.imf.org/external/np/exr/facts/sdr.htm
"
Basket of currencies determines the value of the SDRThe value of the SDR was initially defined as equivalent to 0.888671 grams of fine gold—which, at the time, was also equivalent to one U.S. dollar. After the collapse of the Bretton Woods system in 1973, the SDR was redefined as a basket of currencies. Today the SDR basket consists of the euro, Japanese yen, pound sterling, and U.S. dollar. The value of the SDR in terms of the U.S. dollar is determined daily and posted on the IMF’s website. It is calculated as the sum of specific amounts of the four basket currencies valued in U.S. dollars, on the basis of exchange rates quoted at noon each day in the London market.
The basket composition is reviewed every five years by the Executive Board, or earlier if the IMF finds changed circumstances warrant an earlier review, to ensure that it reflects the relative importance of currencies in the world’s trading and financial systems. In the most recent review (in November 2010), the weights of the currencies in the SDR basket were revised based on the value of the exports of goods and services, and the amount of reserves denominated in the respective currencies that were held by other members of the IMF. These changes became effective on January 1, 2011. In October 2011, the IMF Executive Board discussed possible options for broadening the SDR currency basket. Most directors held the view that the current criteria for SDR basket selection remained appropriate. The next review is currently scheduled to take place by the end of 2015.
The SDR interest rateThe SDR interest rate provides the basis for calculating the interest charged to borrowing members, and the interest paid to members for the use of their resources for regular (non-concessional) IMF loans. It is also the interest paid to members on their SDR holdings and charged on their SDR allocation. The SDR interest rate is determined weekly and is based on a weighted average of representative interest rates on short-term debt instruments in the money markets of the SDR basket currencies.
SDR allocations to IMF membersUnder its Articles of Agreement (Article XV, Section 1, and Article XVIII), the IMF may allocate SDRs to member countries in proportion to their IMF quotas. Such an allocation provides each member with a costless, unconditional international reserve asset. The SDR mechanism is self-financing and levies charges on allocations which are then used to pay interest on SDR holdings. If a member does not use any of its allocated SDR holdings, the charges are equal to the interest received. However, if a member's SDR holdings rise above its allocation, it effectively earns interest on the excess. Conversely, if it holds fewer SDRs than allocated, it pays interest on the shortfall. The Articles of Agreement also allow for cancellations of SDRs, but this provision has never been used. The IMF cannot allocate SDRs to itself or to other prescribed holders.
General allocations of SDRs have to be based on a long-term global need to supplement existing reserve assets. Decisions on general allocations are made for successive basic periods of up to five years, although general SDR allocations have been made only three times. The first allocation was for a total amount of SDR 9.3 billion, distributed in 1970-72, the second—for SDR 12.1 billion—distributed in 1979-81, and the third—for SDR 161.2 billion—was made on August 28, 2009.
Separately, the Fourth Amendment to the Articles of Agreement became effective August 10, 2009 and provided for a special one-time allocation of SDR 21.5 billion. The purpose of the Fourth Amendment was to enable all members of the IMF to participate in the SDR system on an equitable basis and rectify the fact that countries that joined the IMF after 1981—more than one fifth of the current IMF membership—never received an SDR allocation until 2009.
The 2009 general and special SDR allocations together raised total cumulative SDR allocations to SDR 204 billion.
Buying and selling SDRsIMF members often need to buy SDRs to discharge obligations to the IMF, or they may wish to sell SDRs in order to adjust the composition of their reserves. The IMF may act as an intermediary between members and prescribed holders to ensure that SDRs can be exchanged for freely usable currencies. For more than two decades, the SDR market has functioned through voluntary trading arrangements. Under these arrangements a number of members and one prescribed holder have volunteered to buy or sell SDRs within limits defined by their respective arrangements. Following the 2009 SDR allocations, the number and size of the voluntary arrangements has been expanded to ensure continued liquidity of the voluntary SDR market. The number of voluntary SDR trading arrangements now stands at 32, including 19 new arrangements since the 2009 SDR allocations.
In the event that there is insufficient capacity under the voluntary trading arrangements, the IMF can activate the designation mechanism. Under this mechanism, members with sufficiently strong external positions are designated by the IMF to buy SDRs with freely usable currencies up to certain amounts from members with weak external positions. This arrangement serves as a backstop to guarantee the liquidity and the reserve asset character of the SDR. "
Methinks London gave the purchaser a good price. Gold traded around at lows not seen since 2009 this last week...
Now, about the interest rate on the Gold/SDR allocation repo... ???
Hmmm... take a look at the chart of activity through 2014 to get an idea of who is buying/financing SDR purchases/repos:
https://www.imf.org/external/np/tre/ftp/2015/040115.htm
US, Japan, China, and Germany were almost exclusively the purchasing members during calendar 2014.
UK, France, Brazil and austria were mere rounding errors of size in comparison..
-And, of course, the US purchased well more than half of all SDRs sold/repo'd for the 2014 calendar period...
Timing is everything??
https://www.imf.org/external/np/tr/2015/tr043015.htm
"There will be two eminent policymakers at the Fund over the next two weeks. On May the 6th, our Managing Director, Christine Lagarde, will welcome Jane Yellen, the Chair of the Federal Reserve Board to open the Finance and Society Conference which is being co-hosted here at the IMF with the Institute for New Economic Thinking. That's May the 6th, Janet Yellen. That will be open to the press.
Then about a week later on May the 14th, the Managing Director will welcome Mario Draghi, the President of the ECB for the 2015 Michel Camdessus Central Banking lecture. That will be open to the press and we will share more details with you a bit closer to the date. You recall this lecture last year was addressed by Janet Yellen. So this year we've very pleased to welcome the President of the European Central Bank. "
Last week is not this week, however...
IMHO, based on last years SDR purchase activity during which the US purchased more than 50% of all outright SDR allocation purchases the odds are high that the US purchased/repo'd the Gold/SDR allocations of Greece, and shall now be paid interest by The IMF for doing so as well...
Not complicated. Just start printing Drachmas and try to contain the inflation to as short a time period as possible.
Could be quite the firesale of assets as the entire country is "liquidated." Still don't understand why theGovernment didnt start nationalizing everything to contain any financial "aftershocks."
If a drachma was a coin made up partially of silver alloy it could become the most held currency in the world. Just sayin'.
european Countries are very rich, they have the money to chnage good working traffic lights into LGTB traffic lights!
Through European Song Contest NWO Homosexualism Is to Be Foisted on Youth and Austrians as Normalityhttp://new.euro-med.dk/20150513-nwo-homosexualism-to-be-enforced-on-yout...
In todays bizzarro world, the kissoff will end up costing more then bailing them out (again).
Talk with us on the IMF Integrity Hotline: 800 548 5384
/Worthless cunts. Place your IMF membership in the next 10 minutes and receive 10,000 SDR credits absolutely free. Adjusting currency rates may reflect at time of transaction.
http://coinmill.com/SDR_calculator.html
http://www.xe.com/currency/xdr-imf-special-drawing-rights
Lying IMF bastards.
https://www.imf.org/external/np/fin/data/rms_sdrv.aspx
It was Varoufakis who said that there is no plan B, not those assholes mentioned.
But no Grexit because of NATO , putin and China.
If Greece would be out of the EU putin and China would have some harbour facilities in the not so distant future and the war in Syria would be for nothing. (Putan and Assad will win).
Thats it !
There will be another solution a little bit of EU and a little bit of increasing Sovjet influence.
Macedonia is becoming more important. Kosovo, former serb area, next to Macedonia has the biggest USA base in Europe: Camp Bondsteel.As a result of the youngest european war. ( EU/NATO war against serbia)
Somebody put the lit on . And started the first islamic war in Europe ? Nice training area for the young islamic european fighters.
ISIS/ISISL/IS in Europe ?
If Italy would like to leave the EU..... are the allowed to do so?
Italy could offer, next to the existing facillities to the USA, also some to the Russians and Chinese.
And how about Spain ? What if they would default, what eventually will happen, too ?
So, since these countries are not allowed to leave the EU, the remaining of Europe would be forced to keep on paying the Italian, Spanish, Greece, bills. Destroying the rest.
And Why ?
Because USA said so.
No competitors allowed !
Got it ?
Greece has timed this well, great for tourism. I plan to take a villa with a pool for a month all for $10.
Timing is everything.
Grexit coincides with smt and rate hikes. Purely coincidental that IMF is just now realizing this has been a farce and they're just now losing interest in kicking the can further. IMFs time table is dictated by outside factors.
Will Dollar live to see another day is the question or, is there a real chance that they break the buck this time?
The streets will be littered with stock and debt casualties and cadavers before this year is over.
Despite the accelerated Global bank merging. When US J6P muppets finds out, you may be hanging from a CCTV surveillance camera. Keep pushing the envelope, the entertainment will be bliss.
We warned you of dangers, live with your mistakes. I wonder how many hanging central planners will be posted on instagram? That should increase stock value.
/sarc
http://www.socialmedialawbulletin.com/2015/01/who-owns-your-instagram-co...
We better not post on Fuckface. Can't let the hanging photos go at no cost.
/LOL
The way things are globally, I think that the word "plan" is redundant at least in the "West"'
It ain't called the Empire of Chaos for no reason.
All of the economic theories conjured up since the 18th Century Industrial Revolution are redundant, so no plan is possible ... except to try to prepare for complete breakdown, as per the NSA and cops in the USA, or various "preppers" (though I don't think any of them grasp the real likely scenario after collapse of the Empire).
The "Industrial Miracle" was/is a once-off form of civilization based on cheap, easily obtained, dense energy resources such as coal originally and until about 100 years ago when, as luck woul have it, oil discoveries began to make up for increasing difficulties in mining coal. But now, from about 2005, Peak Easy Oil happened.
The economic theories of both Left and Right are now redundant, because we live on a finite planet which cannot support infinite growth.
Therefore no real plans can be made, just a random "kicking the can down the road" with financial crime and war of course.
Merkel will order her taxpayers to the rescue before the IMF/EU/anybody else outside Greece bankrupts Greece.
If Greece leaves the EUR-system it is because _Greek_ politicians have ordered it, not because a Greek debt has missed a payment.
Watson
Thanks for the 100euro loan. I was speaking to my friend at lunch and he said, if I borrow 200euro more, I can then pay you back 100euro on the loan. What do you think, it's a good idea right?
Sounds like a very good idea.
Last week, I borrowed enough money to repay all my debts.
Brilliant(!!!)
Some day/week/month/year it will be that last kick to the can. I don't know when, but it sure looks as if time is running against the status quo here.
"Even so, European officials are considering mechanisms to ring fence Greece both politically and economically in the event of a euro breakup..."
Ah So! If Greece crashes out of the Euro, the EU will also isolate it when it comes to voting on whether to continue or raise more politically motivated economic sanctions against Russia. Until now, it has been reported that Greece would likely veto any further sanctions in order to foster good relations with Moscow.
Meanwhile, if things get really really heavy going for Germany's Mutti, she can always give it all up and run her little shop here: Mutti shop in Curitiba Brazil
That may be the case. If so, I wouldn't be at all surprised to see Greece given enough funding to get through to mid-July to really stiff the ECB, but also veto the sanctions.
Once increased sanctions were vetoed, you can be sure other countries would line up and agree with the ending of the sanctions - making it unlikely they'd be re-imposed.
Perhaps they'll agree a package for Greece on the (unspoken) condition that it vetos sanctions, which we know Germany and others don't really like and only ever agreed to them because of pressure from Washington, Westminster and one or two Eastern EU members like Poland and Latvia.
I do not hear any news about the real issue in the Eurozone = Italy that has similair debt dynamics
Athough it looks close to the end, I'd expect there are still 2 more months of this shitstorm.
If you look at the time-line at bottom you can see Greece has a number of payments to make to the IMF. The Greeks will find a way to make all these payments – by hook or by crook. There will be no default to the IMF. The total IMF payments between now and mid-July total €2,648,142,243.
However, the Greeks feel they are being screwed by the European Union/ European Central Bank (EU/ECB – basically Germany) – if you look two months down the road into July/ August you can see some massive payments due to the ECB/EIB. Over a period of a month Greece owes €6,669,680,000 – far larger than what they owe the IMF. What they’re arguing about at the moment is a disbursement of a loan worth €7,200,000,000! Basically that would just cover what they owe in July/ August – which basically means if they get this loan they can pay off the ECB/EIB! And then straight back to square 1.
Why bother? Why not just stiff them?
Greece has just been invited by Russia to join the BRICS bank (The New Development Bank) – overnight.
https://au.finance.yahoo.com/news/greece-invited-join-brics-bank-093028319.html
Guess what? There’s a huge BRICS summit in Russia in July. When? July 9-10, 2015.
Why am I sending this to you? I’d suggest that the longer these Greece/EU negotiations drag on without resolution towards July, the greater the chance there will really be chaos in international markets in July – particularly in Europe as it looks increasingly likely Greece will stick the middle finger up to Europe.
Forewarned is forearmed.
You can throw into this Greek PM Tsipras going to an economic summit in St. Petersburg, Russia hosted by Mr. Putin in mid-June (June 18-20) and also the upcoming negotiations about extending EU sanctions against Russia (also in June). If negotiations with the ECB/EU aren’t progressing by now you can expect a Greek veto on extending these sanctions almost certainly.
Greece has been invited to become a member of the development bank of the BRICS economies, including Russia and China, which is seeking to become a counterweight to the IMF, a government source said Monday.
The invitation came during a telephone conversation between Greek Prime Minister Alexis Tsipras and Russia's deputy finance minister Sergei Storchak, the government source said in a note to the media.
This announcement came late Monday as Greece was meeting with its eurozone partners in Brussels to try reach a deal with its EU-IMF creditors that would release the 7.2 billion euros ($8 billion) remaining in its bailout programme, which expires at the end of June.
Tsipras called the bank's invitation "a happy surprise" and expressed interest, saying he would "study the proposal in detail," the statement said.
The Greek premier will discuss the BRICS bank with top representatives at an economic forum in Saint Petersburg on June 18-20, the source added.
http://graphics.wsj.com/greece-debt-timeline/
Individual Repayments
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entries
Search:
Creditor
Due Date
Amount
Description
Rate
Treasury bill holders
May 15, 2015
€1,400,000,000
Short-term treasury bills
2.50%
IMF
June 5, 2015
€301,167,990
Loan under the IMF's first bailout program for Greece, in 2010.*
Treasury bill holders
June 12, 2015
€1,600,000,000
Short-term treasury bills
2.70%
IMF
June 11, 2015
€652,904,309
To pay back the money Greece borrowed to pay an earlier IMF loan (May 12)
IMF
June 12, 2015
€338,813,989
Loan under the IMF's first bailout program for Greece, in 2010.*
Treasury bill holders
June 12, 2015
€2,000,000,000
Short-term treasury bills
2.15%
IMF
June 16, 2015
€564,689,981
Loan under the IMF's first bailout program for Greece, in 2010.*
Treasury bill holders
June 19, 2015
€1,600,000,000
Short-term treasury bills
2.70%
IMF
June 19, 2015
€338,813,989
Loan under the IMF's first bailout program for Greece, in 2010.*
Treasury bill holders
July 10, 2015
€2,000,000,000
Short-term treasury bills
2.30%
IMF
July 13, 2015
€451,751,985
Loan under the IMF's first bailout program for Greece, in 2010.*
Treasury bill holders
July 17, 2015
€1,000,000,000
Short-term treasury bills
2.70%
ECB
July 20, 2015
€2,095,880,000
Bonds held by ECB exempted from the 2012 default
3.70%
ECB
July 20, 2015
€1,360,500,000
Bonds held by national central banks exempted from the 2012 default
3.70%
EIB
July 20, 2015
€25,000,000
Bonds held by the European Investment Bank; exempted from the 2012 default
3.70%
Treasury bill holders
Aug. 7, 2015
€1,000,000,000
Short-term treasury bills
2.75%
ECB
Aug. 20, 2015
€3,020,300,000
Bonds held by ECB exempted from the 2012 default
6.10%
ECB
Aug. 20, 2015
€168,000,000
Bonds held by national central banks exempted from the 2012 default
6.10%
Well there's always "Plan 9 From Outer Space".
in case the plan B does not work as expected they also have the plan F as in "We are totally fucked up"
Any Grexit "loan" provided by the troika will be a mess because all the "lenders" will be trying to structure it to maximise their ability to claw something back from Greece, instead of trying to structure it to maximise the benefit to Greece.
And since it appears Tsipras will be crying "we're not going" until Greece is out the door, Greece also will not be focused on minimising the pain and disruption of the inevitable exit.
Long on politicians, short on statesmen.
Why should they "structure it to maximise the benefit to Greece"? Greece borrowed vast sums of money that they never intended to repay and spent it like drunken sailors while it lasted.
The IMF won't loan anyone anything unless they can use it as leverage for control over them. That is why they exist ... to enslave countries and their leaders, formal or informal.
Now, if there was an alternative Greek government that would pledge to submit Greece to debt slavery if the IMF supported them ... or a rebel group that needed guns to take over Greece, then that is more the IMF's style and they would be falling over themselves to lend money to them.
So... they are going to solve Greece's debt problem and inability to make payments on said debt... by giving them a loan.
We do have a load of retards at the top, don't we.
Yes, but first they got the Greeks to voluntarily give up their power to create money out of thin air for themselves and the Troika gave itself monopoly power to create money out of thin air and dole out loans to the countries as IT sees fit, ensuring that all of the individual countries must be subservient and beg the troika to create money out of thin air for their continued existence. (except Germany, which magically seems to get everything it wants .... odd, no?)
And the troika says "no, we will not create more money out of thin air for the Greeks unless the Greeks cut off both of their legs and crawl to us on the ground, groveling."
It is truly insane... and most likely satanic, because only Satan and his minions could be so cruel, capricious and megalomaniacal.
It's a question of who runs bartertown.
"Put simply: Greece has taken circular funding schemes to a whole new level."
Might this be a Ponzi scheme? Looks like one to me, one in which every goverment in Europe is a player.