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Greece Unable To Make €300 Million IMF Payment, Requests "Bundling"
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:
Pretty clear now Greece will bundle IMF June payments despite official spokesman's denial
— zerohedge (@zerohedge) June 3, 2015
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:
LAGARDE SAYS GREEK PAYMENT BUNDLING DOESN'T APPEAR IN CARDS #timestamp
— zerohedge (@zerohedge) June 4, 2015
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:
The Government will not accept extreme proposals. Our people have suffered enough during the past five years. #Greece pic.twitter.com/5wUSoNtw0I
— Alexis Tsipras (@tsipras_eu) June 4, 2015
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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of course they will bungle the june payments and there will be NONE, had to be another miss-print
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.
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.
These fucking Greek guys have no money to make any more payments.
PERIOD. IMF and Disselbloom, take your fucking heads out of your asses.
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 !
It is a good thing for the IMF that there are only 13 months on the Greek calendar.
Cartman will fix greek problem
https://www.youtube.com/watch?v=kPZxd10uOGw
So you bundle all the June payments.....then you bundle all the 2015 payments..then you bundle this centurys payments...all is good...
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.
Why don't they just use this old scam...it might get them a few shekels.
https://419eater.com
Place the skekel in butt cheek and squeak down to nearby welfare office to be granted a new weekly rations cheque.
"Default" is no longer a word... Obongo did another EO and banned its use... like "Negro", Queer" and "Traitor".
How about 'dem 100 year bonds? Tsirpas calling Petronas CFO right now.
Three reasons the top may be in.
http://forayintothemarket.com/?p=111
Forever bonds!
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!
Mr Tsipras
Please memorize the following phrase.
We will not repay our debt because we cannot repay our debt so go fuck yourself.
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...
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.
so they agreed on another month of blabla,
this time about 1,6 billion euros end of month.
happy talking
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.
I wonder if my credit card company would allow me to bundle all my payments into a single payment in 2080.
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?
Greece will gladly pay you Tuesday for a hamburger today
That would be Tuesday sometime in 2115.
Whatever. Just print some more funny money called Euros.
At some point it will blow up for real.
Whatever. Just print some more funny money called Euros.
At some point it will blow up for real.
"Bundling" has screwed cable customers for decades so why not.
http://www.cnet.com/news/funny-or-die-takes-on-cable-bundles-in-hilariou...
....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.
It's not Bund-ling. Both sides are Bung-ling.
Quick, Greece needs to attack Persia.
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...
IMF agrees to bundling...
Just goes to show bungling and bundling are twins.
JBTFB.
Just Buy The Fukin Bundle
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.
Put these fn Greeks out of their misery already. Tired of hearing about this gayrod story... zzzzZZZZZZZ
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!
Maybe Tsipras plans to take out a cash advance against the €500 million ELA extension. "Greek government ministers to the ATMs at once!"
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)
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.
"Troika will call it anything except what it really is."
So will the oh-so-independent Rating Agencies.
hey! only 500mil due in 2050. that's not so bad...
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?
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.
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?
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.
Translation: "Please bundle all our June debt payments, so we can wait until month's end to not make them."
A default of a month. Having trouble making payments?
Go see Russia and tell the Eurocrats to sit on it.
Why not just give Greece another loan to make its payment? What's going on here?
Why not just give Greece another loan to make its payment? What's going on here?
lol very good statement...
I thought this fit so enjoy!
He did say not to worry...............
http://www.izlesene.com/video/the-beach-boys-dont-worry-baby/5274833
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-...
Bulletin: HBO making new blockbuster series - The Game of Loans
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.
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?
Perhaps Serbia wants to fuck the EU too.
Colonial mentality, similar to battered wife syndrome or stockholm syndrome.
My name is Bonds, Greek Bonds and I have the licence to kill. Give me more debt, shaken not stirred, please.
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!!
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.
Anyone for a sub-prime auto loan?