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Greece Unable To Make €300 Million IMF Payment, Requests "Bundling"

Tyler Durden's picture




 

With Greece and creditors unable to come to a compromise on a deal over the past several days, we've said repeatedly that despite claims to the contrary by Greek economy minister George Stathakis, Greece will not make Friday’s €300 million payment to the IMF and will instead request to have the payments bundled so as to buy PM Alexis Tsipras a few extra weeks to negotiate a deal and pass an agreement through parliament. 

Indeed, we said the following on Sunday:

It's quite possible the sense of urgency around the negotiations has now eased because, as we mentioned on Saturday, it looks as though Greece can buy a few weeks by opting to "bundle" its June payments to the IMF, something the Greek government has denied (meaning it's probably assured) but which seems increasingly likely especially given cryptic comments like this one from economy minister George Stathakis:

  • STATHAKIS SEES `TECHNICAL SOLUTION' SOON TO MEET IMF PAYMENTS

While it's unclear whether that means the country will find yet another channel by which they can ask creditors to pay themselves back as they did with the IMF last month or whether that's a reference to bundling the payments is unclear, but here's what Stathakis told Corriere della Sera:


"There shouldn't be any neeed [to bundle the payments]"


We shall see. 

And then yesterday following the latest failure to reach a deal:

However, Christine Lagarde was confident as recently as three hours ago:

IMF chief Christine Lagarde said Thursday that she was "confident" that Greece will make a key debt payment on Friday, as the country mulls a new proposal from official creditors.

 

Lagarde said the proposal offered by European creditors in talks Wednesday, with revised performance requirements for the Greek government, "clearly demonstrated significant flexibility on the part of the institutions."

Needless to say, we were rather skeptical when she said it:

Now may be an opportune time for Lagarde to update everyone her "confidence" level, because moments ago, what we knew was inevitable, was confirmed:

  • DJ GREECE SUBMITTED A REQUEST FOR BUNDLING JUNE IMF PAYMENTS INTO ONE -- GREEK GOVERNMENT OFFICIAL

And Reuters:

Greece has asked to bundle its four debt payments to the International Monetary Fund that fall due in June so that it can pay them in one batch at the end of the month, Greek newspaper Kathimerini reported on Thursday.

 

The request is expected to be approved by the IMF, the newspaper said. That would mean Greece does not have to pay the first tranche of 300 million euros that falls due on Friday.

 

Greece faces a total bill of 1.5 billion euros owed to the IMF over four installments this month.

And just like that, after effectively defaulting to the IMF a month ago, Greece has just re-effectively re-defaulted to the same IMF on its payment due tomorrow, which now will not be made, just as predicted.

Then, adding to the confusion, Greek PM Tsipras tweeted some token statement which for some inexpicable reason had a photo of himself in the tweet:

All of the above of course indicates that Athens has rejected the proposal drafted by creditors on Tuesday and indeed we now have confirmation from the Greek finance ministry:

“After 4 months of negotiations, creditor institutions submitted proposals which can’t solve the riddle of the economic crisis caused by the policies implemented in the last 5 years. The proposals submitted would deepen poverty and unemployment”

 

“The agreement and solution which both Greece and Europe so badly need requires the immediate convergence of institutions to more realistic proposals, which will advance economic growth and social sensitivity. Greek government has submitted such proposals”

Just like that, Greece has called the troika's bluff and put the ball back into creditors' court. For their part, Europe expects a re-counter proposal to the troika's original counter proposal by June 8:

The Euro Working Group expects Greece to respond to an EU proposal to conclude the country’s bailout by June 8, according to a person familiar with the talks.

The farce continues.

In any event, with Friday's payment delayed, there are just a few more left.

 

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Thu, 06/04/2015 - 13:30 | 6163537 Onlygold1
Onlygold1's picture

of course they will bungle the june payments and there will be NONE, had to be another miss-print

Thu, 06/04/2015 - 13:32 | 6163542 dot_bust
dot_bust's picture

So, Greece will bundle a non-payment? That's like saying I will bundle a non-payment of the minimum payment for a credit card bill.

Zero bundled with zero is still...wait for it...zero.

But I digress, for economics is a non-factor when it comes to Europe, where a nation can allegedly pay a creditor by telling the creditor to pay him- or herself. This is a form of extend-and-pretend that I can't comprehend.

Let's call Greece's situation what it has really become -- a defacto default. And, indeed, the bond markets consider it a default. That's why the yields are skyrocketing.

Thu, 06/04/2015 - 13:42 | 6163570 lasvegaspersona
lasvegaspersona's picture

Can't Soros fix this too?

No wait...the solution is the same as for student loans!!! Make a minimum of ZERO for 30 years. IF you make the (minimum of $0) for every payment (no late payments of $0 allowed) the debt will be considered paid.

SEE!!! American accounting to the rescue.

Unless there is someone other than the american taxpayer that actually wants to be paid.

Thu, 06/04/2015 - 13:47 | 6163609 FrankDieter
FrankDieter's picture

These fucking Greek guys have no money to make any more payments.

PERIOD. IMF and Disselbloom, take your fucking heads out of your asses.

Thu, 06/04/2015 - 13:40 | 6163579 FrankDieter
FrankDieter's picture

They will pay civil servants and pesioners before the IMF.  After they pay out pensions and gubmint workers there is nothing left for the IMF.  Fuck 'em !

Thu, 06/04/2015 - 13:44 | 6163600 lasvegaspersona
lasvegaspersona's picture

It is a good thing for the IMF that there are only 13 months on the Greek calendar.

Thu, 06/04/2015 - 13:41 | 6163586 Bopper09
Bopper09's picture

Cartman will fix greek problem

https://www.youtube.com/watch?v=kPZxd10uOGw

Thu, 06/04/2015 - 13:41 | 6163587 youngman
youngman's picture

So you bundle all the June payments.....then you bundle all the 2015 payments..then you bundle this centurys payments...all is good...

Thu, 06/04/2015 - 13:59 | 6163591 Jtrillian
Jtrillian's picture

Expect some kind of IMF sponsored coup attempt to overthrow the Greek government and replace the democratically elected leaders with central bank puppets.  This has to be the next step in the ECB's plan. 

Don't expect it to go over well either. 

They'll continue to paint Tsipras as a "radical" and "reckless" when in fact it is the central bankers themselves who have destroyed the western economy.  People allow themselves to be told what to think and buy into this propaganda though.

Thu, 06/04/2015 - 13:55 | 6163637 BeaverCream
BeaverCream's picture

Why don't they just use this old scam...it might get them a few shekels.

 

https://419eater.com

Thu, 06/04/2015 - 17:22 | 6164428 Atomizer
Atomizer's picture

Place the skekel in butt cheek and squeak down to nearby welfare office to be granted a new weekly rations cheque. 

Thu, 06/04/2015 - 13:57 | 6163645 loveyajimbo
loveyajimbo's picture

"Default" is no longer a word... Obongo did another EO and banned its use... like "Negro", Queer" and "Traitor".

Thu, 06/04/2015 - 14:02 | 6163655 walküre
walküre's picture

How about 'dem 100 year bonds? Tsirpas calling Petronas CFO right now.

Thu, 06/04/2015 - 14:08 | 6163677 drewbby
drewbby's picture

Three reasons the top may be in.

 

http://forayintothemarket.com/?p=111

Thu, 06/04/2015 - 14:13 | 6163691 Joebloinvestor
Joebloinvestor's picture

Forever bonds!

 

Thu, 06/04/2015 - 14:17 | 6163703 Joe Tierney
Joe Tierney's picture

Again, a misinterpretation of what the Greeks actually said...

 

They didn't ask for their IMF payments to be bundled...

 

They actually asked the IMF to bunghole the payments - obviously telling the creditors to shove it where the Greek sun don't shine!

Thu, 06/04/2015 - 14:18 | 6163708 GoldenDonuts
GoldenDonuts's picture

Mr Tsipras

Please memorize the following phrase.

We will not repay our debt because we cannot repay our debt so go fuck yourself.

Thu, 06/04/2015 - 14:25 | 6163733 y.detor
y.detor's picture

After destroying what was left of the real, productive Greek economy these 5 years of memorandums Merkel and the IMF are telling you that we the bankrupted Greeks will keep paying 1 trillion euros to your banks and funds...

And you do believe that of course....maybe because they make our goverment sign it! Nice joke! Good luck...

Thu, 06/04/2015 - 14:27 | 6163738 Kelley
Kelley's picture

In response to this default, gold and silver are taking a beating because...?????

 

Doesn't instability always make PM's go DOWN??

Didn't think so.

Thu, 06/04/2015 - 14:29 | 6163746 JimmyRainbow
JimmyRainbow's picture

so they agreed on another month of blabla,

this time about 1,6 billion euros end of month.

happy talking

Thu, 06/04/2015 - 14:42 | 6163801 Lea
Lea's picture

They'll pay. They'll do anything not to see Greece default. I guess by now, the whole of the Greek population has understood that.

They don't want Greece to default, they don't want a Grexit. So they'll pay. And pay. And pay.

Thu, 06/04/2015 - 14:47 | 6163816 Evil Bugeyes
Evil Bugeyes's picture

I wonder if my credit card company would allow me to bundle all my payments into a single payment in 2080.

Thu, 06/04/2015 - 14:53 | 6163832 TallTurtle
TallTurtle's picture

Great day.  Received the three oak barrels (charred of course) for my corn liquor.  The booze shall rest in the barrels for a few weeks at minimum.  About the time the SHTF I will be sitting on a fortune of liquid gold.  If I am wrong, why would I care? 

Thu, 06/04/2015 - 14:57 | 6163852 Idiocracy
Idiocracy's picture

Greece will gladly pay you Tuesday for a hamburger today

Thu, 06/04/2015 - 17:40 | 6164481 Bazza McKenzie
Bazza McKenzie's picture

That would be Tuesday sometime in 2115.

Thu, 06/04/2015 - 14:57 | 6163854 yogibear
yogibear's picture

Whatever. Just print some more funny money called Euros.

At some point it will blow up for real.

Thu, 06/04/2015 - 14:58 | 6163855 yogibear
yogibear's picture

Whatever. Just print some more funny money called Euros.

At some point it will blow up for real.

Thu, 06/04/2015 - 15:00 | 6163862 PhiBetaZappa
PhiBetaZappa's picture

"Bundling" has screwed cable customers for decades so why not.

 

http://www.cnet.com/news/funny-or-die-takes-on-cable-bundles-in-hilariou...

Thu, 06/04/2015 - 15:06 | 6163893 pndr4495
pndr4495's picture

....just some financial musing - suppose the Syriza people had an agreement with a covert 3rd party - suppose that 3rd party BOUGHT a Credit Default Swap on the Greeks' debt? - suppose the seller took all precaution and exercised all due diligence BEFORE selling the CDS to the 3rd party - suppose the terms of the agreement between Greece and the 3rd party included a clause stating that the buyer, standing in for Greece, would accept a fee of 10% on the total payout, the remaining portion of the payout to be paid to Greece to offset their Debt problem - suppose suppose suppose suppose - the financial hibachi chefs have destroyed the utility of the medium of exchange aspect of money. The current system of money creation and lending has to be dismantled. Money is no longer an equal value trade for a laborer because of these assholes, regardless of the nature of the labor.

Thu, 06/04/2015 - 15:09 | 6163909 WTFUD
WTFUD's picture

It's not Bund-ling. Both sides are Bung-ling.

Thu, 06/04/2015 - 15:11 | 6163917 Bogdog
Bogdog's picture

Quick, Greece needs to attack Persia.

Thu, 06/04/2015 - 15:11 | 6163920 loveyajimbo
loveyajimbo's picture

Anyone mention the vile swine at Goldman... who started this whole disaster by cooking Greece's books?  No penalties, no jail time, not even the usual .001% of profits fine...

Thu, 06/04/2015 - 15:19 | 6163953 falak pema
falak pema's picture

IMF agrees to bundling...
Just goes to show bungling and bundling are twins.

Thu, 06/04/2015 - 15:27 | 6163986 spekulatn
spekulatn's picture

JBTFB.

Just Buy The Fukin Bundle

Thu, 06/04/2015 - 15:53 | 6164001 Sauerkraut-Opinion
Sauerkraut-Opinion's picture

Citation:

"Greece Unable To Make €300 Million IMF Payment, Requests 'Bundling'"

It's not true

Because it gets according to the latest news this evening (19:33 German Mean Time) another 11.000.000.000 Euro fresh money from Brussels (mainly Germany) to come through the summer vacations: 

http://www.welt.de/wirtschaft/article141952054/Elf-Milliarden-sollen-Ath...

So 300 Mio. should be peanuts. 

After summer-vacation 2015 negotiations about Bailout No. 3 will start. 

 


Thu, 06/04/2015 - 15:32 | 6164008 CaptainMoonlight
CaptainMoonlight's picture

Put these fn Greeks out of their misery already. Tired of hearing about this gayrod story... zzzzZZZZZZZ

Thu, 06/04/2015 - 15:50 | 6164044 earleflorida
earleflorida's picture

It begins?

The neo-Russification of the 'Balkan Peninsula'!

http://en.wikipedia.org/wiki/Balkans

,and so... what we have here is the amorphous [?] coagulation of a queerish-nuance set in a anachronistic marriage? Thusly, fomented by yet another amerikana inane 'jingoism' volley..., hoisted by its own petard'! 

Who or what are to define these entities,...? These... Nuland/Kagan's, non-contretemps de`imbelciles? These atrophic foriegn policy makers? Seemingly boiling in their own 'bellicose' soup du`jour! A cauldron of deception and malfeaseance gone full`retard[?!?], whilst, making friends of our enemies, enemies of our friends?

WTF!

Thu, 06/04/2015 - 15:45 | 6164047 TomGa
TomGa's picture

Maybe Tsipras plans to take out a cash advance against the 500 million ELA extension.  "Greek government ministers to the ATMs at once!"

Thu, 06/04/2015 - 15:47 | 6164077 SmittyinLA
SmittyinLA's picture

Banker to banker stooge Tsapiras : you want bundling...of course its extra, don't look a gift horse in the mouth,   now you gonna want undercoating with that? (Say yes)

Thu, 06/04/2015 - 15:48 | 6164086 gwar5
gwar5's picture

Rock on Tylers!

 

I guess, now we get to see how the bonds behave upon this news. Bundling debt for 'later payment' is somwhow not a default? Troika will call it anything except what it really is.

Thu, 06/04/2015 - 18:53 | 6164731 Monty Burns
Monty Burns's picture

"Troika will call it anything except what it really is."

So will the oh-so-independent Rating Agencies.

Thu, 06/04/2015 - 15:50 | 6164095 blueRidgeBoy
blueRidgeBoy's picture

hey!  only 500mil due in 2050.  that's not so bad...

Thu, 06/04/2015 - 16:05 | 6164168 MarcusAurelius
MarcusAurelius's picture

I thought that we delt with this issue yesterday in the "we just need to live with our debt"? isn't that what lagarde said yesterday. Why does it now matter today, or does it? 

I'm really confused here? 

You can't have it both ways can you? 

You are either bankrupt or you aren't right? Insolvent or solvent? Right or wrong? Live or die? 

 

Thu, 06/04/2015 - 16:24 | 6164234 f16hoser
f16hoser's picture

Stamp-out a New Drachma coin worth a Trillion dollars.

Better yet, make it a Gold Plated titanium coin. Tee, Hee, Hee.... Right out of the Federal Reserve Playbook.

 

 

Thu, 06/04/2015 - 16:24 | 6164240 BoPeople
BoPeople's picture

Bundling: Wasn't that a Puritan tradition where two betrothed people would sleep together in the same bed, wrapped in the same blanket, but with a board between the two of them?

Thu, 06/04/2015 - 16:30 | 6164257 f16hoser
f16hoser's picture

Tsipras is a dead man walking. I wouldn't fly for awhile. Food taster would be a good idea... Oh well, he wanted the job.

Thu, 06/04/2015 - 16:46 | 6164313 HopefulCynical
HopefulCynical's picture

Translation: "Please bundle all our June debt payments, so we can wait until month's end to not make them."

Thu, 06/04/2015 - 16:47 | 6164319 yogibear
yogibear's picture

A default of a month. Having trouble making payments?

Go see Russia and tell the Eurocrats to sit on it.

 

Thu, 06/04/2015 - 17:41 | 6164484 Liberty Tree
Liberty Tree's picture

Why not just give Greece another loan to make its payment? What's going on here?

Thu, 06/04/2015 - 17:41 | 6164486 Liberty Tree
Liberty Tree's picture

Why not just give Greece another loan to make its payment? What's going on here?

Fri, 06/05/2015 - 01:57 | 6165732 Ward no. 6
Ward no. 6's picture

lol very good statement...

Thu, 06/04/2015 - 17:53 | 6164524 Joebloinvestor
Joebloinvestor's picture

I thought this fit so enjoy!

He did say not to worry...............

http://www.izlesene.com/video/the-beach-boys-dont-worry-baby/5274833

Thu, 06/04/2015 - 18:30 | 6164634 fremannx
fremannx's picture

Yanis Varoufakis has a very interesting view of how the current global economic problems developed and why they continue to get worse instead of better. In this video interview with Varoufakis, he explains, in metaphorical terms, how the United States has played the major role in collapsing the global economies and why Europe’s economies, through their own mismanagement, have little hope of surviving another looming financial crisis. 

http://www.globaldeflationnews.com/the-global-minotaur-a-global-finance-...

Thu, 06/04/2015 - 18:37 | 6164666 viator
viator's picture

Bulletin: HBO making new blockbuster series -  The Game of Loans

Thu, 06/04/2015 - 18:51 | 6164721 Monty Burns
Monty Burns's picture

If Christine Legarde says she's confident Greece will make the payments, well that's good enough for me.  And should be for you cynical bastards as well.

Thu, 06/04/2015 - 19:11 | 6164794 petkovplamen
petkovplamen's picture

Today its Greece, tomorrow it's the rest of the PIIGS. Yet Serbia is going ahead and still wants to join the EU. Can somebody please expain this one to me, guys?

Thu, 06/04/2015 - 19:46 | 6164899 mijev
mijev's picture

Perhaps Serbia wants to fuck the EU too.

Thu, 06/04/2015 - 21:37 | 6165233 wafer_roll
wafer_roll's picture

Colonial mentality, similar to battered wife syndrome or stockholm syndrome.

Fri, 06/05/2015 - 05:35 | 6165862 Perfecthedge
Perfecthedge's picture

My name is Bonds, Greek Bonds and I have the licence to kill.  Give me more debt, shaken not stirred, please.

 

Fri, 06/05/2015 - 05:53 | 6165870 dag
dag's picture

An educational video should be made, using Greece as the example,
showing the results from electing corrupt, stupid leaders.

This video should explain basic economic theory and the benefits of saving.

The video should end with corrupt leaders and politician being executed!!
The video should end with corrupt leaders and politician being executed!!

Fri, 06/05/2015 - 06:36 | 6165898 Batman11
Batman11's picture

Since 1999 the world has been playing a silly game trying to cover up for the stupidity of the financial sector.

 

This was the peak of the "tulip mania" over the new internet.

Should we let the financial sector learn a lesson after it's folly?

Oh no, the FED decided to use monetary policy to cover up the financial sectors folly.

 

In 2008, the financial sector had forgotten everything about prudent lending with reckless lending into sub-prime, eg NINA mortgages (no income no assets).

Should we let the financial sector learn a lesson after it's folly?

No let's get the bad debt on Central Bank balance sheets and use tax payers money to bail them out. 

Should we uphold the idea that "everyone is equal in the eyes of the law"?

No, let's abandon it for the financial sector and the massive fraud involved in sub-prime.

 

With every banking scandal since 2008.

Should we uphold the idea that "everyone is equal in the eyes of the law"?

No, let's abandon it for the financial sector.

 

We now have a reckless, criminal financial sector making crazy loans where ever they can safe in the knowledge that they will get bailed out.

 

Greece is just the tip of the iceberg.

 

Fri, 06/05/2015 - 06:53 | 6165915 Batman11
Batman11's picture

Anyone for a sub-prime auto loan?

 

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