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Eurogroup Agrees To €7 Billion Bridge Loan So Greece Can Repay Troika; No ELA Increase On Deck
Back in February, when the ill-fated Greek attempt to renegotiate its existing bailout (instead culminating with a new, €86 billion bailout program 5 months later) was launched, Eurogroup chief Jeroen Dijsselbloem rejected a request for a short-term financing agreement to keep the country afloat while it renegotiates the terms of its bailout program. "We don’t do bridge loans", Dijsselbloem told reporters in The Hague, when asked about Greece’s request. Turns out "we do" after all.
After last night's full capitulation vote by Greece which will push its debt beyond 200% just so the insolvent nation can repay its creditors, the next step would be of course finding a funding solution until the terms of the full ESM bailout are ironed out. Which means, coming up with a bridge loan just so Greece has the funds to repay its default to the IMF now amounting about €2 billion as well as the ECB's €3.5 billion payment on Monday.
Sure enough, moments ago Bloomberg reported that Euro-area finance ministers agreed in principle to extend a €7 billion($7.6 billion) bridge loan to Greece, citing an official familiar with the decision. The loan is due to be announced tomorrow once technical details are sorted and national parliaments vote on the bailout deal, the official said, and since this loan has to be funded ahead of the ECB's maturity, this is one deadline the Eurogroup will keep.
Furthermore, with the sanctity of the ECB's balance sheet in question it meant that even one of the staunchest opponents to a 3rd Greek bailout, Finland, would have to promptly fall in line, and so it did:
- FINNISH PARLIAMENT GRAND COMMITTEE APPROVES GREEK BAILOUT TALKS
Meanwhile, if Greece had hoped that just by voting through yet another "deal" which it has no credible way of adhering to it would immediately get an ELA increase from the ECB, it was sorely mistaken.
As Bloomberg also reports, the ECB met earlier today to review the Greek ELA and while it hasn't yet announced a decision, the current opinion in the ECB’s Governing Council favors keeping the cap on Emergency Liquidity Assistance for Greece on hold at the current 88.6 billion euros, people familiar with the matter say.
As a result, the ECB’s Executive Board recommended the limit stay in place, one person says even though the Greek central bank asked for an increase of 1.5 billion euros, two people say.
In other words, the Greek capital controls will remain for far longer even after Greek funding as a pass-through vehicle, whereby the Troika pays Greece so it can repay the Troika (although with the IMF on its way out, it will soon be the Dvoika).
And without any substantial money circulating through the Greek economy, it means that Greek GDP will likely have a double digit decline pushing the country even deeper into depression while its banks, unable to collect on loan payments, will see their NPLs rise at a rate of 1% per day until not only is there no Greek economy, but no Greek banking system either.
But at least Greece still has the euro.
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Did anynone really expect greece not to pay? or Au/Ag would fly through the roof?
This is so ridiculous at this point & time -- I am just beyond words.
Ring Ring
Ring Ring
...............Hello
Hi Peter...............it's Paul here
Once again ...............thank you Peter.......................your a grand chap...................Giving me your money
Speak soon
Bye
Click
CLICK, CLICK (boots clacking).
Mission Acomplished, Mein Obersturmfuhrer !
The Fourth Reich has now been accepted by the Greek untermeschen !
We are certain that the other untermenschen are now pissing their pants off, and wont move a finger against our grandiose project.
Our american masters (those bastard untermeschen) must be happy !!! Soon they will see what's good for them.
only if those bloody Russians didnt exist !
Heinz
Jisslebloom:
I guess I am not above ad hominem attack, personal attack, attack on the person.
Sounds like Cum from flower to begin with... We are supposed to deal with and listen to statements from a man whose name is flower cum?
WTH?
If we accept this man as a negotiator... they know they can say anything at all. They know they can make up shit, or repeat government data which they have been proven to no eve collect. Like the Human cost o the the Iraqi War... there are no Government Data collected about injuries, economic losses, loss of houses, disease, murder, rape, refugees... and on and on.
THE NATO war on Iraq is a huge Corporate Boondoggle. It is pure profit... A corporate Subsidy.
And yet there is no clear government narrative or apology or even responsibility.
Maybe we should blame the Iraqi war on BokoHarum? Blame the people with no technology and global reach for 9-11?
Euro-area finance ministers agreed in principle to extend a €7 billion($7.6 billion) bridge loan to Greece
Greece better hurry up and spend that €7billion ($7.6B)
Soon to be €7B = ($5.8)
$1.8B......................Poof and it's gone!
with 88.6 b cap, open the banks and let greeks feel some pain, bail it in baby, we need some of your hard earned money, gone poof, germany needs the liquidity to keep their future banks open. thank you for last weeks burger today, ha...
Na Ja. Wir mussen viele arbeit machen.
Habben sie eine Ziggeretten?
Danka, Kamarade.
Alles Arbeiten ist immer schlecht.
We work all the time. This is not correct. We must have more time for vacation and more money for our vacation.
Ja ja. Das is immer Richtig.
So in the end it boils down to one thing: gold as a hedge against human stupidity.
Essentially this.
Do you think the Queen will come out and say "Who could have seen it coming?" again?
I know CNBC will be having a melt-down trying to save face for the last 7 years. Hopefully Cramer kills himself.
It's like robbing the stone to pay the Gentiles.
"Long live the €"
"My Arse"
Yes i agree this makes little to no sense at all.
The Greeks re being loaned another 5 billion, only to pay a hefty portion of that right back to the troika.
They are borring money to pay back other borrowed money to essentially the same people the orignal loans were made with? wtf? all this does is get Greece deeper into debt with even more interest.
This is like using a credit card to make minimum monthly payments on another credit card- the balance will always get larger and you will never pay down any of the principal on the loans- you're borrowing money to make interest payments. '
Greece needs to say "Fuck this we're done we default, we will never pay back any of the loans- fuck the EU, fuck the Euro and fuck the ECB- WE DEFAULT!!!"
It's the only way out for them now- they have no choice unless they no longer want to be a country.
YOU CAN'T FIX STUPID
On both sides of the Greek mess.
Greek politicians seem determined to learn the slow way.
This current Greek government will not be in office for very much longer.
Syriza and the Syriza party is imploding as we speak.
The Greek situation grows more absurd everyday even as Greek debt becomes more unpayable every day:
Tsipras told his MPs that a vote against the deal would represent a right-wing coup, intended to prove that an “anti-austerity” government was only a “left intermission.” He was backed by Syriza spokesman Nikos Filis, who warned, “If the Syriza government falls, you will be doing a favour to [German Finance Minister Wolgang] Schäuble and the conservative circles of Europe.”
These statements are staggering in their absurdity and hypocrisy. The supposedly “anti-austerity” and “left” Syriza government, elected on a pledge to end EU austerity, is imposing attacks on the jobs, pensions and living standards of Greek workers that go far beyond any accepted by previous governments. It has, moreover, agreed to a de facto dictatorship of the “troika”—the European Union, the International Monetary Fund, and the European Central Bank—more total and all-embracing than the regime they promised to end. And it has agreed to turn over €50 billion in public assets to a trust controlled by Germany, which will sell off the assets to private speculators and use much of the proceeds to pay off Greece’s creditors.
http://www.wsws.org/en/articles/2015/07/16/gree-j16.html
Great post.
Members and politicians are leaving Syriza because of Tsipras betrayal of his party's policies and for ignoring the referendum result at
5th July 2015.
Not only has Tsipras managed to make Greece even more insolvent due to Greek bailout #3, he is managing Syriza out of political office.
Syriza has done an excellent job.
Keeping the dream of the Socialist State alive.
With a few minor tradeoffs, of course.
What to do? What to do? Let Europe crumble and set off a chain reaction that destroys the world economy or invent some money and keep the party going. Why are any of you people still surprised in any of this? It's aaaaalllllll fake now!
"set off a chain reaction that destroys the world economy" says... who? the US MSM? don't they really mean: "don't rock the boat of the US Stock Markets?"
No offense to you Ghordius but for some dumb fucking reason the U.S. "Markets" are what decide the fate of the world economy. That is how the system is rigged in 2015. We can both agree that is doesn't make sense, but a 5,000 point drop in the Dow would send the world economy reeling once again.
Keep our heads down and eat the peas.
Now that the Greece situation has passed everything is awesome! go borrow some money and go shopping at Wal-mart...
EVERYTHING POINTS TO BEING DEBT FREE AND FREE TO RAOM ABOUT...
go shopping at Wal-mart...
Shopping at the 2nd worst grocery story in America out of 68 supermarkets surveyed?
Walmart ranks second worst in survey of supermarkets where Americans like to buy groceries... while Wegmans takes first placehttp://www.dailymail.co.uk/news/article-3025259/Walmart-ranks-second-wor...
Walmart could improve their stores shopping experience by 100% by simply confining fatties to the right side of the aisles to create a passing lane.
Two 350 lb.ers side by side can cause instant gridlock.
One of the small shopkeepers in the Wal-Mart nearest me is offering $20.00 off eyebrow threading right now.
I’m not sure what eyebrow threading is but seems like a luxury.
stockman sums it up:http://davidstockmanscontracorner.com/the-curse-of-the-euro-money-corrup...
lengthy, but puts it all in perspective.
summary:HOPELESS, HA...
what a bunch of nonsense.
it's not the "crypto socialist" labour laws that put the EU fate in the hands of a very small group of sociopaths.
it's part of a long running plan.
those "crypto socialist" labour laws actually kept the income inequality in check, and facilitated the social-democratic consumer state model. which is capitalism, with restrictions.
necessary restrictions when they were building their technology base.
money, even capital, is just a vehicle for intentions. something Stockman doesn't understand.
Yup. Those 32 hour work weeks with 6 week paid vacations free schooling forever and free everything else makes for a dynamic productive economy.
As long as customers will buy your $350 tire instead of a $45 Chinese one.
Exodus. 1000 Greeks per day brain drain, 1000 Syrians per day taking their place.
Money, get back
I'm all right Jack keep your hands off of my stack
Money, it's a hit
Don't give me that goody good bullshit
Tsipras comes across like he's just out of High School and applying for a Student Loan
The "euro-peon project" must not be allowed to fail!
Ever wonder why they call it "a project" and doesn't the fact they even call it "a project" imply manipulation from on high?
So anyways, the answer to overwhelming, unsustainable debt is even more debt...confirming once again the definition of insanity...doing the same thing over & over again while expecting a different result.
Your best & brightest looking out after you ;-)
at 300 percent the mutha fucker can not sustain. da math mon. but try they will. maybe they will try to change math, ha...
so? the true fight is between "first reform, then we'll cut the debt" and "no, first you make cuts, and then perhaps we'll reform"
nmewn, talking about one euro-project was always a red herring. there are two, one political and one monetary
on the monetary plane, the harder a currency, the more it resembles... gold, the "hardest" of all
and this also means that debt appears more unsustainable, and defaults are more likely
where "peons" appear in that I sincerely don't know. take a look at US Student Debt, which imo is the Apex of Peonage, and explain why there is no such thing in the eurozone
PIIGS.
Peonage.
You have already entered the Twilght Zone with Greece, so pretending you're going to maintain a "hard-ish currency" is wishful thinking at best.
But cheer up. We'll all be in the debt bound, moribund negative growth shitter soon enough anyway.
We all just have our different ways to get there.
Do you see the Euro projects as on track? Labor mobility in the EU will get a boost from highly skilled Greeks emigrating to other EU countries, right? And, de facto transfers in the EU are now assured, right? Will they be fiscal or monetary transfers?
There is no gold. It's been gone for a long, long, long time. Their vault's are all empty and they've all been lying about the availability of it. They have nothing. Everyone is standing around waiting for a delivery that is never going to come. They should all accept that and move on.
http://www.zerohedge.com/news/2013-03-24/another-gold-shortage-abn-halt-...
http://www.zerohedge.com/article/1-billion-gold-bars-taken-delivery-pens...
http://www.zerohedge.com/news/2014-01-18/physical-gold-shortage-goes-mai...
http://www.zerohedge.com/news/2013-01-16/it-will-take-fed-seven-years-de...
http://www.zerohedge.com/news/2014-01-19/germany-has-recovered-paltry-5-...
http://www.zerohedge.com/news/2012-11-09/exclusive-bank-england-fed-no-i...
http://www.zerohedge.com/contributed/2013-08-13/incredible-shrinking-com...
http://www.zerohedge.com/news/2013-05-08/jpm-eligible-gold-drops-fresh-r...
http://www.zerohedge.com/article/latest-gold-fraud-bombshell-canadas-onl...
http://www.zerohedge.com/news/2014-09-25/venezuelas-gold-appears-be-stil...
http://www.zerohedge.com/news/chavez-pulls-venezuelas-gold-jp-morgan-gre...
This (the Greek decision) is completelyl understandable. Many addicts would rather remain in the dread embrace of the drug of their choice than face a future without - even if an entire support group has made it easy for them to 'get better' (have to use quotes. One never knows when the P-C will decide that addicts are simply sober-challenged and descend like the soul-devouring locusts that they are).
The water keeps heating up in the USA and I don't see many frogs getting out of Dodge.
But I love Crack. It's lovely and I wasn't really using my teeth or skin or eyes or organs anyway!
Haha. Euro taxpayers...
Your bankers brought home a stray dog and now you have to feed it for the rest of your lives.
Just like little kids, they'll lose interest and go out to find something else to destroy.
USD will pay it.
Like in the case of insolvent EU banks.
Otherwise EUrope goes BRICS.
WOuld you rulle it out?
There is no 'EU', it's still a dozen plus countries that can't function in a trade board or manage their wallets. Besides the USA can't even pay for the interest on their own loans to themselves and they are using all that TARP money to pretend the stock market is still functioning since the federal reserve is the only one buying by proxy of the banks.
Days like these make me very happy that I have, and continue, to stack.
Human beings are, en mass, idiotic cunts.
There's bound to be a cushy post in the great revolving door for Germany's/Troika's favourite son Tsipras in one of the EU Institutional Behemoths.
If he has ANY sense and i'm not certain he has, he should skedaddle like Yanukovych did before the natives wake from their slumber.
The thing that is beyound my comprehension is, why continue the Agony? I think it is pretty well established, there is no way for any nation endebted to the IMF to repay the loan.
They are only just now getting to what I said would happen a long time ago.
Greece: pay nothing now. Make a giant balloon payment 30 years from now. See you then!
Only I thought it would be more like 10 years. This 30 year idea is pure brilliance.
Bridge loans to where??
Uranus?
Like other countries across Europe, there were plenty of people in the Netherlands who privately supported the Nazi fascist/marxist regime. I have little doubt that the slimeball Dieselboom would have been one such person had he been alive at the time.
Don't forget our new resident shopping cart screamer, Dutch Boy.
I can easily see him dressed as Marlena Dietrich with an SS hat and a stick on paintbrush mustache practicing his salute in the mirror.
I also forecast that he will star in a tragic auto-erotic asphyxia story.
Now after the vote they will start negotiations.
It will be fun.
Trojka will smash the greek politicians.
The Greek population will smahs those, who survive.
ECB the true ruler of Europe ?
Heil Draghi ?