Eurozone Refuses To Blink: Will Hold Back €1 Billion From Greek Payment To Monday

Tyler Durden's picture

Things are getting interesting. Despite earlier headlines that the €5.2 billion EFSF payment to Greece would be made as expected, money which would go to pay European banks and the ECB, it now seems there is more than meets the eye, and the Eurozone will in fact hold back €1 billion of the money until Monday in what is a major escalation in the relationship between the anarchy-controlled country and bankster oligarchy.

  • EUROZONE HOLDS BACK €1 BILLION FOR GREECE TO MONDAY ACCORDING TO A EUROPEAN SOURCE -Dow Jones
  • EFSF SAYS 4.2 BLN EURO TO BE DISBURSED MAY 10 - BBG
  • EFSF SAYS REMAINING FUNDS 1 BLN EURO NOT NEEDED BEFORE JUNE - BBG
  • EFSF SAYS REMAINING 1 BLN EURO DISBURSED DEPENDING GREECE NEEDS - BBG

Why is this an issue? Because net of the payment due TO the ECB, the payment that Zero Hedge pointed out first on May 15 to non-PSI compliant bondholders may very well not be made, unleashing total chaos as to what happenx next:

If Greece were not to get the money, it would face financing problems because of a lack of cash for salaries as well as money for the redemption of 435 million euros of a bond maturing on May 15, a bond that was not fully swapped into new paper under the Greek debt restructuring deal finalized last month.

Somewhere Tim Geithner, whose "plan" this latest farce is, is cackling for now. Soon, he will be crying.