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Greece Admits It Will Not Make IMF Payment On Friday, No Deal Expected Wednesday
For days, Greek officials have been insistent that the country will make a €300 million payment to the IMF this Friday and thus avoid a default.
Last month, we heard the same rhetoric out of Athens and as it turns out, the government had prearranged an end-around whereby Greece tapped its IMF SDR reserves to stay current. In other words, the IMF paid itself. We suspected that some similar arrangement might be in the offing this month when economy minister George Stathakis said bundling June’s payments would not be necessary because Greece was looking at a “technical solution” to make the June 5 payment.
On Tuesday evening we noted that some Greek officials seemed to be suggesting that the “technical solution” was simply a veiled reference to securing a deal that would allow the country to use a portion of its aid disbursement to pay the Fund at the end of the week. That now appears to have been confirmed with a Syriza spokesman saying that if Tsipras does not ink a deal in the next 48 hours, Greece will miss Friday’s payment.
Via Reuters:
Greece will not make a June 5 repayment to the International Monetary Fund if there is no prospect of an aid-for-reforms deal with its international creditors soon, the spokesman for the ruling Syriza party's lawmakers said on Wednesday.
The payment of 300 million euros ($335 million) is the first of four this month totaling 1.6 billion euros from a country that depends on foreign aid to stay afloat.
Greece owes a total of about 320 billion euros, of which about 65 percent to euro zone governments and the IMF, and about 8.7 percent to the European Central Bank.
On Tuesday, Greece's creditors drafted the broad outlines of an agreement to put to the leftist government in Athens in a bid to conclude four months of negotiations and release aid before the country runs out of money.
"If there is no prospect of a deal by Friday or Monday, I don't know by when exactly, we will not pay," Nikos Filis told Mega TV.
At this juncture there's no hope of an actual payment on Friday. Discussions between Tsipras and creditors will likely stretch into the weekend and even if an agreement were struck yesterday, passing the terms through parliament is bound to be an arduous process. Bundling the payments or arrears pending a government shakeout seems to be the most likely scenario. As for an actual default, as mentioned previously, that is to a certain extent a judgement call by the IMF and can ultimately be delayed for at least 30 days at the Fund's discretion.
Speaking of deal “prospects”, PM Alexis Tsipras will meet with European Commission President Jean-Claude Juncker to discuss Greece’s proposal which Tsipras submitted on Monday evening. Tsipras says Greece “had no feedback on its proposal”, confirming what we said yesterday: creditors seemingly did not care about the Greek draft because Hollande, Merkel, Draghi, and Junker apparently agreed on Monday that the troika would simply pen a final proposal for Tsipras and let him know where he needed to sign.
As for the troika’s draft agreement, Dutch PM Mark Rutte confirms what we already knew: the issues are pension reform, fiscal belt-tightening, and VAT.
Via Bloomberg:
“The discussion we’re focusing on is reforms in pensions, labor market and fiscal consolidation and
these seem to be the three, next to the value-added tax discussions, three or four of the main topics,” Dutch Prime Minister Mark Rutte says in an interview with Bloomberg Television.
“The new government can take out certain measures and put in place other proposals as long as when you add them up, the results are still the same in terms of the macro- economic numbers and the fiscal impact as in the previous agreement”
For all the optimists out there, we'll leave you with the following from Spanish FinMin Luis de Guindos:
“[You] can check in [to the euro] but not check out. [I’m] totally sure [Greece will get deal].”
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Greece Admits It Will Not Make IMF Payment On Friday
Poor banker's children will starve.
Oh the humanity.
Oh FUCK Greece already!
Observing Greece is like watching a very slow motion car wreck...
You cannot solve a solvency crisis with a loan, nor printing money. Greece is finding this out as will all the other insolvent nations in the coming years. This piece explains it toward the end.
Time for some moar bankers to suffer thru banker meetings with 7-course dinners, champagne and delicious dancing girls for desert.
Greece is supposed to default, trigger a global financial earthquake then the nice men behind the curtains will give us a new global currency...which everyone will beg for to end the pain.
Problem-reaction-solution
Dont forget who structured Greece to be able to get into the EU.
Yep, cause a crisis, and then ride to the rescue. Here are some solutions they may attempt that fit the mold of past monetary shifts, namely the banks and government gets stronger while the individual loses some of their power and freedom.
Throw those pathetic Greeks out of Europe already.
"dancing boys for dessert"...fixed it for ya.
HEY! YOU! the approved party line is "Fuck the EU". Don't forget that and get back to the ranks, you horrible little man!
you horrible little man!
I think we can amp that up to sick twisted wretches.
Waddya mean SICK!?
wrench or retch?
I'm cornfused
Not really sure, I was hoping you could tell me.
Given the amount of leverage in the financi system, I am expecting the sun to implode.
I sympathize but that won't make the debt go away.
Deer looking at headlights - Mr. Market has been conditioned to.... everybody has been put to sleep...
Dow 18000, Nasdaq 5000 that is until kaboom ...
Since August last year Greece has not received a penny. DISSELBLOOM and company knew exactly how much money was in pension funds, local government, social security and so on ... the June time must have been known for a long time.
Interestingly a lot of things are happening this June ... from BRICS bank to Texas Depository, to Fischer threatening Dimon and company with jail ... let alone the little war conflicts popping up here and there ....
Don't forget arrests made in regards to FIFA corruption.
And in the real wold ontheground I am a salesman who sits with at least 5 people a day ,your common older person,has no money and waiting on the last show to drop the biggest problem is that the kids will not work and by kids I mean40-50 yr olds are dependent on their parents to survive. In my 30 years of selling I have never seen anything like the anticipated problems that at least half of these people are awake to what's going on in America. As Greece foes we will to
65% of the debt is now on the shoulders of taxpayers via IMF, ECB and other eurozone governments. so, the last 5 years was all about moving the debt from commercial banks and TBTF hedge funds to the public. well done. the slavemasters are winning.
Abso Freakin' Lootly.
" No Banker left behind. "
That is true for the first line of debt...but the casino has bets on all of that debt...and that is in private bankers hands....that is where the big losses will come...and why they are worried of contagian..they have taken the markets and made them a game..
keep negotiating as match as you want bitchess... the liitle people, the sheeple, are going to pay the bill in the end ... they always do ..
With what?
There's nothing left to do it with cause the banksters financialized the shit out of economies making them impotent.
This collapse will be brutal beyond belief cause of stupid shit like Greece.
Siriza people have to understand that their ideology is not compatible with the rest of the European mind set... Its a matter of preventing other pro leftist groups rise all over Europe... They cannot let Siriza win...Unless they step down Greece is going to suffer for long time
socialists what do you expect? how can these people do not understand the real road to prosperity is capitalism? dahhhh
lets hope the democrats in this country do not ruin the country and make people mad and ask for independence ...
that Texas depository could be the first step to an independent central bank ... Dont mess with Texas
one thing that remains stable whether socialists or capitalists are in power is the large corrupt puplic sector that has recked this country with its ineficiency and corruption.... this mafia group no one touches... unless this failed, parasitic, apathetic to the perils of the rest of the country but their own pockets group is dismantled, desolved there is no hope in this country...
one thing that remains stable whether socialists or capitalists are in power is the large public corrupt puplic sector that has recked this country with its ineficiency and corruption.... the mafia group no one touches... unless this failed, parasitic, apathetic to the perils of the rest of the country but their own pockets group is dismantled, desolved there is no hope in this country...
I don't think you know what left means in Europe.
generally speaking, I would agree, and point out that this is the source of endless transatlantic confusion
but in the UK too, we have witnessed a Labour Party oscillating from somewhat moderate socialist to liberal socialist and now to confused socialism
if you would apply european terms to the US dominant duopoly, it would be social liberals against liberal conservatives
and currently the US Dems are having a pre-election spat between the socialist wing and the moderate liberal wing
Well we all knew this was going to be the case when they announced the gazprom deal for the pipeline. It doesn't matter what happens in Syria and Ukraine now, Europe will be paying Russia for their gas for a long time yet.
Does it even matter if a country defaults on an IMF loan? Like it doesn't trigger anything.
It triggers the need to monetize the debt, like here in 08 with paulson on his knees saying it's the right thing to do.
But it doesn't trigger the need to moneize the debt. The IMF is a nothingburger. It's not a systemic bank. It's just a international slush fund to prevent bank runs
So market goes down then? No? Oh right. I forgot.
Pretty sure this is seriously bullish.
It's always bullish! Look at those green shoots!
What about the five day grace period? Or was the payment due on the 1st, and he is now in the grace period? Use a paper check and mail it. That should add a day or two. If you are in a bind, forget to sign the check.
See, we pay-check-to-paycheck americans do have something to offer!! Free advice!!!
That would be fine if you could explain where the money was coming from.
Well ZH, your prediction that Syriza would cave in seems to not be on the agenda this week.
But in this world every week is a new day for moar shenanigans.
Is the Euroship a ship of bondage or a ship of fools still has to play out.
The race to foggy bottom and who is last man up is like musical chairs.
Tsiipras has ALREADY caved in, all there is now is the theatre that he negotiated hard and the obstacle of passing an atrocity agreement through parliament without collapsing his government from within his own party.
The new boss was the same as the old boss, and in some ways even worse.
I don't know if he has "caved in" as he says the IMF will nOT be paid on Friday. So the Troika gets bonked.
Also, there is now talk of securitizing Greek tax payments of future via IOU's issued by Greece -- a form of parallel currency non interest bearing bonds outside EU/ECB jurisdiction. That should send shivers down the ECB's spine (if they have any spine left!).
Lets see what Yanis has up his sleeve.
Tsipras - write "€300 million" on a piece of paper and hand it to the IMF.
It's as good as anything else floating around the ponziconomy.
"That's as good as money, sir. Those are I.O.U.'s. Go ahead and add it up, every cent's accounted for. Look, see this? That's a car. 275 thou. Might wanna hang onto that one." - Lloyd Christmas
does this trigger CDarses ?
tyler, you should check out this excellent analysis of the housing market by keith jurow--it's amazing!
http://www.advisorperspectives.com/newsletters15/Why_the_Housing_Market_...
Whoever wrote that never spent any time in Fairfax County or SanFran proper. Housing markets are all localized with some doing well and others stagnant and still others that are dropping. Or for poor schmucks like me who bought a townhouse in the worst neighborhood in the worst zipcode in the DC area where to this day values have not raised more than 15% from their nadir where everywhere else is up 50%. Took me 6 years to get out from under that fiasco. In fact when I sold it in 2013 it was worth more than it is worth now! EVERY other single place in the DC area is up 25% since then. Can I pick them or what!
contra indicators are good indicators .
Used to be anyways.
30 grace day period leads us to July 4th.
Independence Day from the Euro!
How much would it be to get me some of them sweet Greeks CDS's?
Yeah, I got suckered too.
But I'm in some pretty good company.
Time for the Greeks to start selling some national treasures.
http://brosome.com/the-10-hottest-greek-women/
So the creditors are paying themselves and expecting to stick the bill to the Greek zygotes yet unformed in the far future. Good luck with that - you couldn't make this up in the most outrageous fiction.
YHC-FTSE, to be frank, I have followed worse sovereign debt debacles. Mexico, for example. loooong time ago
Iexit -> iDeal
Pexit -> Pdeal
Spexit - >Speal
Frexit -> Freal.
etc. etc.
When will this PIG die?
When they fall out of the sky after they realize the can't fly so high.
Greece (and the othere EU members) should also admit that they are a colony of Germany.
If Greece doesn't pay on Friday then it is a default. There is no delay at anyone's discretion. No amount of sweet talking and word smithing by the IMF can change that. It is a default and the derivatives should fly. Anything else is rigged bullshit.
my bet is firmly on "rigged bullshit"
You know that the ISDA decides if a default occured, that meets the requirements that CDS get triggered. Last time Greece did not default.
Greek jokers.
I've seen this kind of political drama countless times already.
The thought process is always No-No-No-No-Yes-No-Maybe-No-Yes-No-Maybe-NOOOOO-Yes!
There will be NO GREXIT ever.
The giveaway that there will be NO GREXIT.
"If there is no prospect of a deal by Friday or Monday, I don't know by when exactly, we will not pay," Nikos Filis told Mega TV.
Here's the logic. If you have no intention of paying, then it doesn't matter if it's by Friday or Monday of a no-deal. You say you don't know when exactly, you will not pay. Are you saying that if you know when exactly, the payment will resume? Thus in other words, you're saying that the payment is being delayed, not defaulted?
NO GREXIT ever.
Nobody is allowed to leave the Euro.
Once your in, your in.
as said recently by a former Lehman advisor that is now the Spanish minister for economy. just saying
but do tell me how your country got out of the dollarzone. I'm all ears, and China too
They stated they had til end of June anyhow , didn't they , a couple weeks back.... ?
Another kick the can soap opera.
The Eurocrats want to keep their useless opulent lifestyle going.
I'm expecting a huge decline in world markets this autumn - a decline of "biblical" scale.... I would fine it rather irionic if Greece, with all of it's historical importance, was the trigger to bring everything down.....
This whole episode is like masturbation without the payoff.
As Victoria Nuland says, fuck the EU!
"a judgement call by the IMF and can ultimately be delayed for at least 30 days at the Fund's discretion"
So much for June 5th as the deadline. What a joke.
Stay tuned for the next daily episode of "as the world churns" . An EU production that could end tomorrow or it can keep us in somnia eternaly .
People sure have short memories.Here in SoCal we still remember the Orange County bankruptcy.The Treasurer was a complete hopeless loser who was taken out to the lap dance joints by the GS guys ."Liquoring the Indians",I believe it is called.
No one man should have the authority to bet and lose an entire yearly budget.
If he had to submit to a weekly audit by a committee there would be more transparency and he would have thought more about prison food and fun in the showers.
The point is that many retirees pension funds are heavily into Munis because they are tax free and risk-free.The solution in many small villages in the UK is to sell off the parking meter revenue for ten years or so to the French.This is selling the family silver,an act of sheer desperation,and only works once.You can only kick the can so far....
"The point is that many retirees pension funds are heavily into Munis because they are tax free and risk-free."
Uh, no! Pension money is tax deferred. While most municipal bonds are tax free, they wouldn't provide any benefit to pension holders because ultimately pension funds are taxable as pensioners start receiving funds. As for munis being 'risk-free'. No again. Some munis are AAA and even insured to maturity, but that still is dependent upon the insurance carrier to come through. While its low risk, that's not the same as risk-free. But most municipal bonds aren't even triple AAA insured, anyway. Still considered a lower risk investment, that's not the same as 'risk-free'.
Up next Chicago,and Puerto Rico.If now Muni bonds are seen as extreme risk then we truly are screwed. Chicago bonds rated as junk and Puerto Rico also rated as crap.
The Trillions spent in the sand box and on Wall Street could have paid off this debt.
The loud screaming will start when the Chicago teachers and firefighters have to take a haircut on their pensions (and the PR civil servants,too) when the default happens.
Kaitlyn Jenner to move to Greece and let people touch her junk for $1500 a throw. That should help the economy recover.
There was little doubt the ECB and Greece wouldn't ultimately come to terms, at least for the short term. The ECB has made their final offer today, and Greece says they'll look at it and decide. Yeah, right. LOL Its a done deal. Greek government just has to make it look like they fought the good fight for voters. I haven't seen as much acting since Hamlet.
I only hope that whatever the outcome for Greece, that this episode becomes the beginning of a world that shuns debt altogether.
Kill it, kill it DEAD, this notion that people should be enslaved by loans...loans they don't even NEED.
Then repudiate ALL debt, and start over. Go back to a world where only the very desperate would even CONSIDER taking out a loan from a bank.
NO MORE DEBT! If you think someone ought to have something, then GIVE it to them without obligation. Otherwise, STFU and mind your own damned business!
They will rob Peter to Pay Peter this time.
"What difference does it make"