Greece Will Default To IMF Tomorrow, Government Official Says

Tyler Durden's picture

Earlier today, as the exchange between Greece and its creditors got increasingly belligerent, Estonian Prime Minister Taavi Roivas told public broadcaster Eesti Rahvusringhaaling in interview that a possible Greek decision to leave euro area wouldn’t soften stance of other EU countries and that Greece’s debt would still remain outstanding and creditors would expect this money back."

"If Greece leaves, the value of their new national currency would decline very fast, so their solvency would still worsen further. They will either have to cut spending or improve their tax revenues. There are no other options."

So did this latest antagonism change the Greek mind? According to a flash headline by the WSJ released moments ago, not all. In fact, Greece just made it official that it would default to the IMF in just over 24 hours.


Greece won’t make a debt repayment to the International Monetary Fund due Tuesday, a senior Greek government official said Monday.


Earlier this month, Greece had notified the IMF it plans to bundle its loan repayments falling due this month into one payment of around 1.6 billion euros ($1.7 billion), which is due Tuesday.


The IMF has said that Greece will immediately be in arrears if it fails to make the debt repayment.

So, as per game theory, the Greek plan - at least until the social mood turns very ugly - remains just one:


The problem is what happens then...

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SelfGov's picture



Don't believe it though...

SickDollar's picture


AlaricBalth's picture

The IMF has been charging an effective interest rate of 3.6% on its loans to Greece. This is far more than the interest rate the institution needs to meet all its costs, currently around 0.9%. If this was the actual interest rate Greece had been paying the IMF since 2010, it would have spent €2.5 billion less on payments.

Out of its lending to all countries in debt crisis between 2010 and 2014 the IMF has made a total profit of €8.4 billion, over a quarter of which is effectively from Greece. All of this money has been added to the Fund’s reserves, which now total €19 billion. These reserves would be used to meet the costs from a country defaulting on repayments. Greece’s total debt to the IMF is currently €24 billion.

Tim Jones, economist at the Jubilee Debt Campaign, said:

“The IMF’s loans to Greece have not only bailed out banks which lent recklessly in the first place, they have actively taken even more money out of the country. This usurious interest adds to the unjust debt forced on the people of Greece.”

COSMOS's picture

Where is the people's money?  Why are the banks closing.  Maybe they should convert them into prisons for their bankers and politicians.

Herd Redirection Committee's picture

WTF, ZH gets it wrong?

IMF already said if Greece misses a payment, they will simply be "in arrears", not in default, as per the IMF.

What, you think its that easy to get away from the IMFs debt slavery, that one can just declare bankruptcy???

COSMOS's picture

 A banker will never accept default.  They will always consider you in arrears, that is why you have to burn them at the stake with their worthless fiat as fuel.

Manthong's picture

Heck.. no BFD

They can default to the IMF .. all the saints in heaven.. all of the powers in the universe but they will never default in the eyes of the ISDA because that is when SHTF.

J S Bach's picture

Ain't socialism run by criminal banksters a beautiful thing to behold?

Keyser's picture

So how does a bankrupt Greece stay in NATO?  

Manthong's picture

aw, c'mon..

it's just a matter of the f'n Krauts selling them more submarines.


I'm gonna love the flames for this one

Soul Glow's picture


Stackers's picture

Remember techincally it is not called a "default" when you miss a payment to the IMF.

Soul Glow's picture

When Greece misses a payment to the IMF it also misses debt payments to the Trioka which include such Stalwarts as Estonia and when said Nation-States miss this income they need to sell other assets to make up for it.  This begets a daisy chain of selling financial instruments that cascades with hundreds of trillions of dollars worth of derivavties.

Welcome to Fight Club


Manthong's picture

Oh F me with a spoon..


Better yet a spatula..

Oh gosh, even more better yet a trenching tool.

Or a freaking 300 hp Cat back hoe.

But the m fo’s will not allow it to happen until China calls its cards in.


but, goddam it, it's not a lie if you believe it

HowdyDoody's picture

Panos says long selfie sticks

espirit's picture

Greece: 'I won't cum in Euro mouth'.

Portugal: 'I won't cum in Euro mouth'.

Italy: 'I won't cum in Euro mouth'.

Spain: 'I won't cum in Euro mouth'.

France: 'Viva la France'.

Manthong's picture

Wow.. I am not 100% sure of how that logic really works .. but

I’ll go with the flows.

the kings whore's picture

There's no way that the-powers-that-be will allow Greece to leave the game.  Ain't going to happen.  Expect to see tanks in Athens by Monday morning if the Greeks opt to leave.

layman_please's picture

Estonia? hahhaa

First, Estonian Central Bank (an oxymoron in the eurozone) took all the interest payments of Greek debt so government was left empty handed.

Second, Greece was given a pass on the interest payment long time ago.

Third, nobody in this country expects to see this money ever again. 800 million to be precise. Of course nobody asked the people if this money should be given away in the first place.

Fourth, we don't have many assets left to sell. 200 kg gold for example.

Fifth, we have lowest government debt in Europe. No problem to get a loan or two. Hell, ECB is printing at the moment.

I have no idea what the fuck you are talking about. Estonia is smaller than a average city in the world. We won't start shit.

PrayingMantis's picture



... Lagarde might be saying ... I'MFucked ...

Soul Glow's picture

For the first year in a long time the IMF head, be it Ms LaGarde or otherwise, did not attend the Bilderberg Group conference.

Chew on that one.


Farqued Up's picture

Unless she was on her death bed and was miracously revived, that really is big news. It may mean she is out.

willwork4food's picture

That or they know what is going to happen and are ready for mayhem with the BIS & UN picking up the pieces. Welcome to the NWO, one global currency shoping. Oh, and get ready for Rand Paul to be the next POTUS.

Soul Glow's picture

Dupe so I'll take the time and say....


Tall Tom's picture



In hyperinflations Silver does very, very well.


Gold is core wealth preservation.


Silver is your speculative investment.

thamnosma's picture

I don't know when it will happen or if I'll live that long, but when the bond market implodes, precious metals are going to be something to behold.

Realname's picture

I doubt that. Who would fuck an orange lizard? She is a perfect example of a gobemouche. Flies and other small insects fear her.

Edit:I didnt mean to disparage lizards in any way.

Rusty Shorts's picture

Orange is the new Black.


In other news, ah the good ole days of Greece...

Realname's picture

You bastard! Thats as bad as being Rick-rolled....

thamnosma's picture

Lizards are just little dinosaurs awaiting their  next turn.

Meremortal's picture

Many here are just as bad as those they vilify. They HOPE that hundreds of millions of people will suffer because they think they will rule due to their little piles of gold.


Real nice people.

They are also in for a big disappointment as they will be no better off than anyone else.


espirit's picture

Then you must believe creating wealth from linen and ink - IS OK?

Fucking Fool... day off and drunk but not Stoopid.

Meremortal's picture

You're just another Central Banker wannabe except you aren't even willing to work for it.


Fuck you.


You are more evil than they.

espirit's picture

Got Au, Ag, Cu, Pb, or any other tangible collateral?

I do.

greenskeeper carl's picture

you are implying that central bankers themselves somehow 'worked for it'. nothing could be further from the truth. Creating currency out of thin air on a computer hardly counts as work. Most fo us gold buyers arent 'looking forward' to any collapse. This is going to cause a lot of pain and suffering for most people of the world, I certainly don't want that. We are merely looking to insulate ourselves from it the damage done by those who presume to rule over us all. Others are free to do so as well, and I would encourage all people to do just that.


We are not the ones who will be causing this pain. We have been activily trying to warn anyone who will listen about it. I want to be able to help people, especially my family. You are a fucking fool and you have clearly learned nothing in your time here.

Tall Tom's picture



Man...You have got that wrong.


Yes millions of people are GOING TO SUFFER. Many millions more will DIE as a result of this.


I do not intend on being one of those millions, no thank you.


If I am not in a position to help myself then I am in no position TO HELP OTHERS when the Shit Hits The Fan.


And yes I may end up ruling BECAUSE OF MY REASONABLE ATTITUDE, MY PRUDENCE, and MY SACRIFICES while all the rest of the fools were out the pushing and chasing worthless paper as having any real SUBSTANCE.


I MOST CERTAINLY do not need or want the UNREASONABLE AND THE IMPRUDENT making decisions about my life.


That is the REASON why we are at where we are at NOW.


In fact THEY ARE THE CAUSE of the many millions who will die.

In fact THEY ARE THE CAUSE of the many millions who will suffer.


I did not print up a bunch of FRAUD.

I was not CORRUPT and DISHONEST in my dealings with ANYONE.




And you have the unabashed audaciousness to declare that I am no better than a Fraudulent and Corrupt FUCKER who would sell their own mother and children down the river to realize a short term profit in order to satiate their OWN GREED for fucking worthless paper?!?




And, post collapse, do not come knocking on my door for relief.


My food reserves are stockpiled for the APPRECIATIVE and not for the UNWORTHY ENTITLEMENT MENTALITY INGRATES as yourself.


The APPECIATIVE will work for what they get and they will be fed.


The INGRATES with the Entitlement Mentality can hit the road and starve.

willwork4food's picture

Tom, don't hold back, tell us what you really think.

Gold Eyed Cat's picture

That's a lame statement Mere.  People posting here are common investors, employees, business owners, and retired folks.  WE are by definition the primary victims of endless methodical attacks doled out by psychopathic bankers and politicians.  And instead of burying our heads in the sand, we have decided to give ourselves ulcers and migraines trying desperately to stay informed, so just maybe we can give our families a bit more comfort and safety in the future.

And IF you hear a tinge of ugliness in our posts it is because every slave daydreams of getting in a punch or two when the time comes.  That's all. It's gallows humor.  It's the hope that we can grab a little control in an uncontrollable situation.  We think, "Every dog has his day." while we wait.

So I respectfully feel your statement that somehow WE are no better than THEM is utter crap.  I've injured no one.  I've stolen from no one.  I've plotted againt no one.  But, you betcha!  I think it would be pretty swell, if Jesus Christ decided today is the day he wants to pop in to say Hi, turn over tables, and thow some money lenders down a few stairs. 

Colonel Klink's picture

No, the beautiful thing to behold will be the head of said banksters hot of the guillotine.

Tall Tom's picture

Whether or not the ISDA declares a Default is moot, Manthong. It is irrelevant.


Let us game the scenario and look at the end result. If the end result is the same then it really does not matter what the ISDA does, doesn't it?


If the IDSA declares a Default then those Financial Institutions which issued the insurance on Greek Bonds will become inolvent due to NEGATIVE EQUITY. 


If the IDSA does not declare a Default then the Banks which on the Greek Bonds are insolvent due to NEGATIVE EQUITY. This happens because the Banks have a FRACTIONAL RESERVE. The loss on any Greek Bonds held, now valueless, wipes out any equity held in Reserve.


What difference does it make? Some Banks will become insolvent while others do not.


The end result is the same.


Which Bank is insolvent and which Bank is not?  THIS IS THE CRUX OF THE PROBLEM. Nobody knows.


That is the only question that really matters.


Would you make a loan to an insolvent Bank? No?


Yeah. I know. You are smarter than that. You do not have cash to...throw away. That is quite a sensible, reasonable and prudent decision on your part.


Will another Bank knowingly loan to an insolvent Bank? No?


You are right. They will not. They are not only smarter than that but some still have the common decency to have some Fiduciary Responsibility and protect their shareholders', depositors, and their own EQUITY since they are invested into their job.


It is in a Loan Officer's personal interests not to originate bad loans...if he values his job. Thus he will act accordingly in a reasonable and prudent decision making process. He really is not that much different than you, or I, or anyone else in that regard.


As a result, as nobody knows which Banks are insolvent and which are in "good standing", these Loan Officers stop originating Loans, any loans, especially OVERNIGHT LOANS, as they do not know whether or not the doors will be open on the next day to where they can collect the loan..




That is called a CREDIT FREEZE.


It already happened in the RECENT PAST...2008. This is not some wild cockamamie scheme which I dreamed up. There is empirical evidence that supports my prognostication on how others will behave in similar circumstances. Social Psychology, you know?


That is what HAPPENED in 2008. There was a CREDIT FREEZE The Banking System was on the ABYSS OF IMPLOSION as a result. Even the MSM does not hide this. We were HOURS AWAY from a total collapse. What in the hell is so hard to understand about this?


Well it is happening AGAIN. This time the catalyst is NOT the TOXIC MBS as it was the last time.. This time the catalyst is TOXIC SOVEREIGN DEBT.


And the issue as to what catalyzes the reaction is also MOOT.




Welcome to Credit Freeze II...the Sequel.


The consequences have yet to reveberate through the Financial Sector. And when it does there is absolutely NO HOPE of bailing out the DERIVATIVES IMPLOSION WHICH FOLLOWS. This time we will goen into the ABYSS from which the is NO ESCAPE.


It is much like a Black Hole and we are reaching the EVENT HORIZON shortly...say September...


So whether or not a Default is declared by the ISDA is MOOT and irrelevant. They have absolutely NO POWER to STOP THE CARNAGE to follow.

Overfed's picture

The suspense is fuckin' killin' me.

Tall Tom's picture

Just be sure that the oncoming famine and lack does not.


Stock up on US Dollars, IN YOUR PHYSICAL POSSESSION, and then, AFTER Credit Freeze II manifests, divest of all of those stockpiled Dollars as you can buy anything for "Pennies on the Dollar" as CASH will be scarce. There is only a scant $*00 Billion to back up $10 Trillion in Deposit Accounts and Credit Accounts. The ATMs will be down because the CREDIT FREEZE will also shut down many American Banks.


That window will last about SIX WEEKS...


Afterwards, after the Fed has printed Physical Dollars to satiate demand, and after the Foreign Central Banks have divested themselves of the $12 Trillion, because of their own INSOLVENCY, and it is repatriated to the USA to buy up everything for "Pennies on the Dollar" (Who does not like a good sale after all?).




...ALL HELL BREAKS LOOSE and you will see a Hyperinflationary Inferno manifest right here in the USA.


And at that time you had best be heavy into Gold and Silver, which you bought up during the Sale of the New well as Copper Jacketed Lead in Brass Casings to protect it.


And if I am wrong?


You can always redeposit your Cash in the Bank to earn that generous 0.25% Interest.

espirit's picture

TT: I Concur.

Howevah, I'll loan at 0% as I don't believe in usury.

But I will take your first born if not paid in full.

Tall Tom's picture



I do not have a first born as it was miscarried.


But I do believe in usury as Christ referred to it in the Parable of the Talents.


In that allegorical parable, of course, he is the Master, and he was angered that is wicked servant had hid the wealth and had not even deposited it into a bankwhere it would gain interest.


If the Master can collect Interest than so can I.


(But the Interest being paidout to Savers today is nominally negative due to "Official Inflation Rates". So the Bank is charging you to use the Capitl deposited.)

willwork4food's picture

Don't forget the master got really pissed off @ the temple because the exchange for Roman (diluted) coinage to Shekels (pure silver) was robbery to the civilian, who also could not afford an undamaged dove for sacrifice so the market sold them a slightly damaged dove ....

chunga's picture

That sounds plausible enough but sure blows a hole in the theory of cash being banned.