IMF Confirms Greek Referendum "Irrelevant" After Program Expires On Tuesday

Tyler Durden's picture

If there was any confusion if, as we warned first thing today was the biggest problem with the Greek referendum namely that next weekend there will no longer be a proposal to vote on, the IMF's Christine Lagarde just put it to rest. As she told the BBC moments ago, the Greek government's planned referendum on the terms of any new bailout plan will be invalid after Tuesday, when the current programme expires. As a result, the Greek people would be voting on proposals that were no longer in place.

But she said that if there was a resounding vote in favour of staying in the euro and restoring the economy then Greece's creditors would be willing to try.


Speaking to the BBC's Gavin Lee, she said there was still time for the Greek government to change its mind and accept the eurozone proposals.

Incidentally, in another interview with CNBC, Lagarde confirmed that hope is still an investment thesis: " I certainly hope that the bundled payment due to the IMF on Tuesday night, at the latest, will be paid."

Good luck, really. But assuming Greece, which hasn't had any cash in over a month and has zero intention of paying the IMF its €1.5 billion, whe then?

" If they were not paid on Tuesday night, then there is a series of procedures and notifications that I have to initiate. But technically, any country that does not pay on due date is in payment arrears vis-à-vis the Fund. And the consequences are that the Fund cannot disburse vis-à-vis that country until the arrears has been paid. Greece remains a member of the IMF. Greece benefits and alternate seat on the Board… and has access to technical assistance, receives surveyance and services but it cannot receive any payment until arrears has been paid.'"

So it's time to rephrase the referendum question which as was presented on the website of the Greek parliament is currently as follows:

Greek people are hereby asked to decide whether they accept a draft agreement document submitted by the European Commission, the European Central Bank and the International Monetary Fund, at the Eurogroup meeting held on June 25 and which consists of two documents:


The first document is called ‘‘Reforms for the Completion of the Current Program and Beyond’’ and the second document is called ‘‘Preliminary Debt Sustainability Analysis.’’

  • Those citizens who reject the institutions’ proposal vote Not Approved / NO
  • Those citizens who accept the institutions’ proposal vote Approved / YES.

We have no idea what a new referendum formulation may look like - most likely one on remaining in the Eurozone - but at that point the phrasing will likely be moot: by next Sunday, all else equal, the social situation in Greece is almost certain to devolve to the point where the government will hardly have much control left over key public works, especially if it has no money to pay wages and pensions, and the banking system implodes earlier in the week.

Ironically, the Greek PM, who clearly did not read the Goldman "conspiracy theory" article, which explained that Greece was set up as a fall guy, and a catalyst for the ECB to unleash even more "forceful" QE and thus to pad banker bonuses for 2015 with taxpayer moneyh, still is convinced that in the game theory between Greece and the Troika, rational minds are making the decisions:

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Bobbo's picture

Choice is irrelevant, before the fact or after, in any crime.

(IMF: "never steal anything small")

knukles's picture

Get me Vlad on the line!

Oh, you know?
Reading ZeroHedge?!
Good man!
The money's on it's way!
The Chinese are in, too?
Sure, the porting agreement'll be sent this evening.
What, environmental pipeline stuff for the EU?   Nah, forget it.  I ain't answering their phone calls
You'll get a kick out of this that I sent her

Yeah, you got my cell

Bobbo's picture

Yea, I saw that happen in Tulsa, once.  Long time ago but nuttin there changed since.

knukles's picture

Awesome!  That's the EU/IMF/Trioka/Whatever caught in Greece.
Never, ever loan anybody any money who can't pays you back.

yrad's picture

Now that I know Papa reads ZH, I have to assume Trispa is trolling around... Therefore...

Dear PM,

You are part of an illegal banking cartel designed to siphon your countries wealth. You are powerless and insignificant and your beloved Greece has but one pint of blood left to bleed.

Sleep well tonight for tomorrow your place in history will be sealed.

wolfnipplechips's picture

Brings to mind a funny SNL clip I recall from too many years ago:


PapSmear's picture

Greek people are hereby asked to decide whether they accept a draft agreement document submitted by the European Commission, the European Central Bank and the IMF:

With lube or no lube?

chilller's picture

No lube...just shards of glass and broken razor blades...

Little Doll's picture

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...

Dewey Cheatum Howe's picture

They will keep changing terms so the referendum keeps needing to be rephrased to keep re framing it in false terms but palatable to the masses that there will be no referendum vote by the time these windbags get done jawboning each other in circles to not have to make a decision.

Bobbo's picture

Look to BRICS for some better terms.  What a coup that would be!

BarkingCat's picture

Yes, because the members of the BRICS area something to aspire to emulate.
Brazil - corrupt South American nation looking to emulate Venezuela.
Russia - resources rich but infested with tribe parasites. Nation that is trying to recover from 100 years of communism.
India - One foot in the outhouse and one the future. 3rd world corrupt shithole that needs to get over few hundred years of British colonialism.
China - the factory to the world that is polluting itself silly. The world on the other hand is so far in debt they cannot buy all the shit China makes.
S Africa - perfect example what happens when actual Africans take over a nation.

chunga's picture

The first rule of credit default swap club is you do not talk about credit default swap club.

CPL's picture

Until the cheques start bouncing then everyone start pointing fingers at the IMF.

CHC's picture
CHC (not verified) Jun 27, 2015 6:25 PM

"There is no program."  "Of course there is time..."  WTF?!?  They're all fucking nuts.

mtndds's picture

These people on both sides are damn bipolar!!!

booboo's picture

not only nuts but above the law nuts and that can and will be a dangerous group of nuts.

BarkingCat's picture

Not above laws of physics.

For example they are still affected by gravity.

HardlyZero's picture
3 hours ago IMF's Lagarde on Greece: 'Progress', but next few days are crucial

Here's a loosely edited transcript of CNBC's interview with IMF Managing Director Christine Lagarde:

Q: Can I just clarify what we've heard today first. There's going to be no extension to the proposals on the table, so after Tuesday, effectively they die. So Alexis Tsipras has three days here to u-turn?

A: First of all, I would to remind everybody that Greece is under a program with the IMF until March 2016. So what has been discussed today are the European financial arrangements which are due to expire after a previous extension on June 30th. And of course everything is going to depend on the developments in the next few days. But as far as we are concerned, Greece is a member of the euro zone. When they are prepared to talk, and to continue negotiations, we stand ready to do that. we have constantly in the last few days showed a lot of willingness to progress, flexibility in what they can adjust to. And we stand ready to continue to doing that.


So there is really nearly 9 months in her mind to cut a deal?  OK, in the long-term.  But in there short-term the banks collapse and it all gets wiped.

BurningFuld's picture

Going to be awfully tough to turn this ship around.

One And Only's picture

I can feel for both sides here. On one hand Greece borrowed more than they could afford to live a profligate life. However without some repudiation of debt it really is just borrowing on one credit card to payoff another. But the Greek government won't budge on spending cuts. So it's just fuck all.

Kirk2NCC1701's picture

Both sides playing the "It's no Me, it's You" card, for purposes of PR and CYA.

Commodore64's picture

Can't we all just get along ???

MFL8240's picture

Get rid ofg this beastly woman, she is a total fraud!

BarkingCat's picture

She is a French lawyer.
We could overlook the French part, but why is a lawyer in charge of a international financial institution?
Only thing they know about finance is how to maximize their billing rates.

fowlerja's picture

Looks like the referendum needs to be voted on this the Greece can determine which poison to drink...

JustObserving's picture

Tsipras is dreaming of a better deal with a stronger negotiating position after the referendum.  The IMF will not negotiate:

The IMF Itself Is a Criminal Organization 

To understand this story, you have to reel back to the birth of the IMF. In 1944, the countries that were poised to win the Second World War gathered in a hotel in rural New Hampshire to divvy up the spoils. With a few honourable exceptions, like the great British economist John Maynard Keynes, the negotiators were determined to do one thing. They wanted to build a global financial system that ensured they received the lion's share of the planet's money and resources. They set up a series of institutions designed for that purpose – and so the IMF was delivered into the world.


The IMF’s official job sounds simple and attractive. It is supposedly there to ensure poor countries don’t fall into debt, and if they do, to lift them out with loans and economic expertise. It is presented as the poor world’s best friend and guardian. But beyond the rhetoric, the IMF was designed to be dominated by a handful of rich countries – and, more specifically, by their bankers and financial speculators. The IMF works in their interests, every step of the way.

Usurious's picture
Usurious (not verified) JustObserving Jun 27, 2015 6:36 PM

''the International Monetary Fund remains under the control of the United States and the former colonial powers. All constitutional matters still require an 85% share of the vote(4). By an inexplicable oversight, the United States retains 16.7%, ensuring that it possesses a veto over subsequent reforms(5). Belgium still has eight times the votes of Bangladesh(6), Italy a bigger share than India and the United Kingdom and France between them more voting power than the 49 African members(7). The managing director remains, as imperial tradition insists, a European, her deputy an American. The IMF, as a result, is still the means by which western financial markets project their power into the rest of the world.''

''Decolonisation did not take place until the former colonial powers and the empires of capital on whose behalf they operated had established other means of retaining control.''

disabledvet's picture

The IMF only deals in DOLARES.

That's all the IMF in fact is...a place to go when you are in need of US DOLLAR funding.

The massive number of greenbacks produced by the USA these past "post Lehman" years have ALL been destroyed by a "usurious" tax regime.

In short..."there are no dollars period"...not even in the USA.

So "Europa" (in the form of "Greece") will need to post collateral for the "dollar window" to be opened.

Can Greece stiff the IMF? Sure. But the European Banks are FUCKED if that happens because they rely almost totally on dollar funding to even exist.

Sure...Europe can post collateral at the International Monetary Fund in the form of their entirety of holdings of gold...but that will provide only enough dollar funding for perhaps one week of Europe's funding needs.

Good luck turning to Wall Street right now. "They're too busy being richer than you" while living on the biggest welfare program ever devised in human history called "Obamacare."

grunk's picture

The child has grown up.

The IMF is out to DESTROY the Dollar as the world's reserve currency.

Raul44's picture

"But she said that if there was a resounding vote in favour of staying in the euro and restoring the economy then Greece's creditors would be willing to try." >> Thats it? They just have to wish to stay? Because last time I checked they do want to stay and they do want to keep euro. So I guess they will get a bailout despite rejecting proposals simply because they wish to stay in, lol.

Able Ape's picture

Fuck you Christine - Greece is NOT the Hotel California....!

silverstud's picture

Christine Legard

If there is no bread let them eat cake

grunk's picture

Who wants a default more?




eduard khil's picture

Can Ukraine bail out Greece? After all the IMF won't turn off funds to them. 

Quinvarius's picture

Except after Monday the central bankers will have closed their personal trades and kicked the can again.  Greece will have another 30 days or whatever.  What the IMF is pissed about is losing the ability to yank the the markets around anymore to a vote.  But hey, there is always Ukraine to mess with now that they were stupid enough to join the team.

williambanzai7's picture

Voting on proposals that no longer exist beats not being allowed to vote on any proposals.

dexter_morgan's picture

Let them eat cake.

off with their heads


Bloodstained velvet, dirty lace
Naked fear on every face
See them bow their heads to die
As we would bow as they rode by

Niall Of The Nine Hostages's picture

I hope the quickie she had with Yanis in the women's room in the conference hall was worth it.

Pity she wasn't the only one who got fucked.

Paracelsus's picture

After the Argies lost in the Falklands/Malvinas conflict,the IMF came calling,"need some extra cash?".The Argie Airforce officers go Greek chorus,"We want to be paid out first!".Also there is a story about a controller who stuffed up an F-4's refuelling tanker intercept.Woo,hee,ya shoulda heard the harsh language on the radio waves before he ejected after his engine flamed out on vapors."Puta this and a Puta that!".(Water is kinda cold in the lower '40's).

Years ago the IMF took Brazil out behind the woodshed.Told them to chop down the rainforest and raise beef cattle for export.Never mind those pesky GreenPeace folks....Export the wood and export the beef,pay back the bankers. Brazil almost defaulted and the IMF,with threats of a military coup,was in there bigtime.

Never mind the Indians killed or climate change effects.The two O2 generators on the planet are ocean plankton and the Amazon basin.That is it...

The IMF: fucking the planet and the people over for seventy years.

Oh,and one last thing: How much IMF funding has ended up in the swiss accounts of dictators and their

families? With the debts shoved onto the people?  Hmm....


Batman11's picture

Creditors are in full kamikaze mode going for a 100% loss rather than looking for some return.

Talk about cutting off your nose to spite your face.


Dajd45's picture

My, My, my, if ever there were an example in the raw, of how contemptuous the 5% "elite" are of democracy, freedom and choice, this is it.

If Greece votes No to the bailouts previously put to them, then they will go their own way and in time wll come to realise what they have avoided. If only Cameron and Obama were as democratic. Maybe they are still jealous the Greeks gave us the principle of democracy.

We are going backwards;- we should be looking more like Switzerland and Iceland for more democracy, referendums, recall, written constitutions and legally binding manifesto's. We are slipping back quickly into the tyrrany of remote decision making, Divine right, and expediency for the 5% 'elite', legalised oppression and subjugation, and enslavement to a system which is governed by those that inherit and "belong", and know nothing, but money printing out of thin air.

The Banks will make sure the rest of us are in hock up to our eyeballs to keep us in our place.

escapeefromOZ's picture

I am glad it happened this way . The damage to the EU will be in the trillions of dollars in bad bets . The idiots in charge gave a trillion dollars at 1% to the EU failed banking system but could not wipe out the Greek debt . This will be a lesson to some idiots vassals in the balkans countries that still dream of entering the Titanic called the EU .......

ah,ah,ah,ah,  The vassal in charge are interested in the welfare of the banks but not the citizens . Greece would have to be forced to pay a debt impossible to pay and acquired through market rigging , LIBOR , FOREX rigging and other criminality of the banksters . 

The next stop for Greece should be to chase the previous PMs that sold out the country and became very reach in the process . 

I suggest the Romanoff solution . Line them up against the wall with their families and shoot them . No pity , that would be the start to the extermination of the Elites that wants to eliminate 99 % of us !


falak pema's picture

Hahaha, Two faced Lady Lagarde lives up to her reputation of Milady de Winter.

She has always said : the IMF is there to serve its clients. The IMF imposes NOTHING. The IMF is always prepared to listen and to propose solutions NEVER to IMPOSE ULTIMATUMS. After all, we have a multilateral mission to provide advice and to always leave our DOOR OPEN, not to impose DICTATS...


Now its : We make you an offer you cannot refuse! 

chilller's picture

With the referendum 2 days before the program does it make it too late? Or is the IMF making up rules as it goes?

More game of chicken by a man dressed like a ugly woman...