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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.


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.


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Wed, 05/09/2012 - 14:24 | 2410697 Bazinga
Bazinga's picture

I will gladly pay you Tuesday for a billion today...NOT

Wed, 05/09/2012 - 14:33 | 2410737 Temporalist
Temporalist's picture

I will gladly pay you Tuesday in Drachma for a billion today.

I think that sounds more accurate.

Wed, 05/09/2012 - 14:42 | 2410795 AlaricBalth
AlaricBalth's picture

Here we go again with Greece and the Eurozone playing "financial chicken". 

Wed, 05/09/2012 - 19:10 | 2411633 Peter Pan
Peter Pan's picture

After more than two years of this stupid game between Europe and Greece, no one is ahead except the bankers for the time being. For how long can this stupid game go on?

There is no consensus, no strategy no light at the end of the tunnel. In fact I don't even see a tunnel. I just see a shaft.

Wed, 05/09/2012 - 21:22 | 2411895 Muppet Pimp
Wed, 05/09/2012 - 15:17 | 2410953 disabledvet
disabledvet's picture

"in euro's." there...fixed it even more.

Wed, 05/09/2012 - 18:41 | 2411565 Iconoclast
Iconoclast's picture

It was always the only real option, regress back to the old currency. Outrageous that the Greeks should now be treated like naughty school kids for not voting in the technocrats squid demands..

Wed, 05/09/2012 - 14:57 | 2410864 williambanzai7
williambanzai7's picture


Wed, 05/09/2012 - 15:22 | 2410964 AlaricBalth
AlaricBalth's picture


Wed, 05/09/2012 - 15:37 | 2411030 falak pema
falak pema's picture beee or no to beee... Oh well; if shakespeare gets involved in this it will turn fast to chic porno...Once more into the breach dear, the breach becomes a gaping hole..the size of the atlantic, no no; I like it tight ...why do you propose to me these spreaaaaaads so wiiiiiiide! I don't like this strange weird feeling...I'm lost in translation! What should I say? Auw weider sein...Salut! Chiao? VAya con dios! Skol! Fuck you very very much! ...It's the tower of babel and the feeling is : I'm Tiny Tim! Don't like it at all!

Wed, 05/09/2012 - 15:43 | 2411058 Mountainview
Mountainview's picture

The money is suposed to come back immediatly to our banks.. so you bank accountants will be very unhappy!

Wed, 05/09/2012 - 14:25 | 2410698 hedgeless_horseman
hedgeless_horseman's picture



Greece better look out for what is in the other hand.

Wed, 05/09/2012 - 14:28 | 2410719 GeneMarchbanks
GeneMarchbanks's picture


You bitchez remember sike doncha?

Wed, 05/09/2012 - 22:53 | 2412068 StychoKiller
Wed, 05/09/2012 - 14:33 | 2410736 junkyardjack
junkyardjack's picture

Better watch out for which end both of those are headed into

Wed, 05/09/2012 - 16:23 | 2411213 Ookspay
Ookspay's picture

LOL Jack! At least the greeks are used to taking it in the ASS!

Wed, 05/09/2012 - 14:25 | 2410702 qussl3
qussl3's picture

So they dont pay a creditor and some salaries?

How's that different from now?

Wed, 05/09/2012 - 14:31 | 2410726 HoofHearted
HoofHearted's picture

Because then ISDA has to rule yet again, a new rounds of CDs defaults, we play spin the bottle to see who gets kissed and who gets totally fucked, and the dominoes all fall toy soldiers. (I tink Martika should have written a song like this one instead of "step by step, heart to heart...")

Wed, 05/09/2012 - 14:36 | 2410759 sessinpo
sessinpo's picture

HoofHearted                 2410726

Because then ISDA has to rule yet again, a new rounds of CDs defaults, we play spin the bottle to see who gets kissed and who gets totally fucked,



Everyone gets screwed except for US dollar. Currency war. Allows Fed to ease without massive plummet in dollar. At least not plummet right away.

Wed, 05/09/2012 - 14:39 | 2410773 Joe The Plumber
Joe The Plumber's picture

He he

There was an old troll who used to say that a lot but nobody listens to a troll

Wed, 05/09/2012 - 14:56 | 2410865 msamour
msamour's picture

Well, you are certainly not dating yourself...

Wed, 05/09/2012 - 14:28 | 2410716 rubearish10
rubearish10's picture

What's a billion between friends?

Wed, 05/09/2012 - 14:31 | 2410727 Temporalist
Temporalist's picture

Instant "austerity" on the populace.  I knew I should have taken those classes on "How To Be A Better Bankster."

Wed, 05/09/2012 - 14:31 | 2410730 Pancho Villa
Pancho Villa's picture

Warning shot across the bow.

Wed, 05/09/2012 - 14:31 | 2410732 slaughterer
slaughterer's picture

Is this what the ESFS is meant for?  To make emergency payments minus what is "not needed" to bondholders and banks using Greece as a funnel?  Who cannot see through this abject farce?

Wed, 05/09/2012 - 14:37 | 2410769 ziggy59
ziggy59's picture

ESFS = Extra Stupid Financial System?

Wed, 05/09/2012 - 14:33 | 2410733 SheepDog-One
SheepDog-One's picture

US equities immediately shriek out in pain at the mere mention the free money heroin might be delayed.

Wed, 05/09/2012 - 14:33 | 2410735 Moneyswirth
Moneyswirth's picture

Wonder what German taxpayers are thinking right now?

Wed, 05/09/2012 - 14:32 | 2410739 lizzy36
lizzy36's picture

One wonders whether EFSF is doing this merely to avoid being downgraded (which is coming).

Also one can imagine that this morning when the whole payment was in jeopordy that Geithner got on the phone and screamed bloody murder about "stability of entire financial system" and other crap that he has had on a "loop" in his office since the fall of 2008.  

Wed, 05/09/2012 - 14:57 | 2410872 carbonmutant
carbonmutant's picture

THe banks can't afford a run... They need the money.

Wed, 05/09/2012 - 14:33 | 2410741 slaughterer
slaughterer's picture


(Greek Translation available next Monday)

Wed, 05/09/2012 - 14:34 | 2410751 slackrabbit
slackrabbit's picture

yes you have a gun to there head.

and what if they say 'pull the trigger mofo'

Wed, 05/09/2012 - 14:35 | 2410756 junkyardjack
junkyardjack's picture

They'll blink like John Snow

Wed, 05/09/2012 - 14:35 | 2410752 junkyardjack
junkyardjack's picture

There's still plenty of US stocks and gold to sell to cover payments...

Wed, 05/09/2012 - 14:44 | 2410804 SheepDog-One
SheepDog-One's picture

Sell stocks to who? I dont see a lot of retards with money out there today.

Wed, 05/09/2012 - 14:50 | 2410837 NotApplicable
NotApplicable's picture

All it takes is one special one named Ben.

Wed, 05/09/2012 - 14:34 | 2410754 slaughterer
slaughterer's picture

Gimme the Moody's bank downgrades already!  What are they holding off on?  Waiting for Warren B to get out of BAC and WFC?  

Wed, 05/09/2012 - 14:35 | 2410755 RougeUnderwriter
RougeUnderwriter's picture

Ya - I wonder how ISDA will spin this upcoming DEFAULT.

"The CDS will not be honored because both parties mutually agreed that Greek would not pay debt owed....."

No way to BS this one - We ain't paying is a default!



Wed, 05/09/2012 - 14:55 | 2410850 NotApplicable
NotApplicable's picture

Perhaps they'll just refuse to comment and keep the shades tightly drawn until everyone stops asking.

Wed, 05/09/2012 - 14:35 | 2410757 ziggy59
ziggy59's picture

Timmy should be given a free trip to Greece and talk to people for this is part his creation, and then, what's left of him sent to Spain...

Wed, 05/09/2012 - 14:37 | 2410761 Joe The Plumber
Joe The Plumber's picture

Holding back twenty percent for june?

Oooh scary.

EFSF are a bunch of milk toasts

Wed, 05/09/2012 - 14:37 | 2410763 walküre
walküre's picture

Who is potentially getting shafted $435 million times on May 15th?

A bank, a pension fund? Who?

Wed, 05/09/2012 - 14:40 | 2410787 Joe The Plumber
Joe The Plumber's picture

A northern european state pension fund.

Wed, 05/09/2012 - 14:40 | 2410778 Village Smithy
Village Smithy's picture

As this worsens it becomes less about finance and more about personality clashes. At some point someone is going to tell the banksters to shove it. I am surprised that it has taken this long, none of the money will ever see a true Greek's hands.

Wed, 05/09/2012 - 14:39 | 2410780 unionbroker
unionbroker's picture

bookkeeping entry, money will be credited to Greece but will end up in someone elses bank accout

Wed, 05/09/2012 - 14:55 | 2410862 NotApplicable
NotApplicable's picture

Not bad work, if ya can get it.

Wed, 05/09/2012 - 14:42 | 2410794 pods
pods's picture

Hillarious, so the ECB/Troika/FED is going to withhold a payment to the Greeks who will not hold it long enough to smell it before it goes back to the banks in the EU and this is supposed to threaten GREECE?!

Why does that scene in Blazing Saddles come to mind?


Bart: [low voice] Hold it! Next man makes a move, the nigger gets it! 
Olson Johnson: Hold it, men. He's not bluffing. 
Dr. Sam Johnson: Listen to him, men. He's just crazy enough to do it! 
Bart: [low voice] Drop it! Or I swear I'll blow this nigger's head all over this town! 
Bart: [high-pitched voice] Oh, lo'dy, lo'd, he's desp'it! Do what he sayyyy, do what he sayyyy! 
[Townspeople drop their guns. Bart jams the gun into his neck and drags himself through the crowd towards the station
Harriet Johnson: Isn't anybody going to help that poor man? 
Dr. Sam Johnson: Hush, Harriet! That's a sure way to get him killed! 
Bart: [high-pitched voice] Oooh! He'p me, he'p me! Somebody he'p me! He'p me! He'p me! He'p me! 
Bart: [low voice] Shut up! 
[Bart places his hand over his own mouth, then drags himself through the door into his office
Bart: Ooh, baby, you are so talented! 
[looks into the camera
Bart: And they are so *dumb*! 

Wed, 05/09/2012 - 15:08 | 2410920 DCFusor
DCFusor's picture

That scene is the best metaphor going for what the banks did to *every* country's taxpayers.  Gimme money or the nigger gets it indeed.  I use it when explaining all this to the unwashed.

Wed, 05/09/2012 - 15:12 | 2410935 stocktivity
stocktivity's picture

one of the funniest movies ever

Wed, 05/09/2012 - 15:14 | 2410944 Uber Vandal
Uber Vandal's picture

Martin Armstrong brought this scenario up too recently:



Wed, 05/09/2012 - 14:47 | 2410819 Dr. Acula
Dr. Acula's picture

Greece should take the money and run.


Wed, 05/09/2012 - 14:48 | 2410820 Mugatu
Mugatu's picture

This is not a loan.  

A loan is where both parties have duties and responsibilities - one to lend and the other to pay back.  In this case you have one party (ECB) which is not loaning money since it can arbitrarily hold back money, and the other party has no intention of ever paying it back.

They both deserve each other!

Wed, 05/09/2012 - 14:49 | 2410831 ParaZite
ParaZite's picture

While we are all being hustled on a global scale...

I think that Greece's Jimmies are about to get rustled. 

Que the Molotov's and social upheaval in 6... 5... 4...

Wed, 05/09/2012 - 14:51 | 2410838 Winston Churchill
Winston Churchill's picture

Rockopoulos meets hardplanceopopoulus.

Wed, 05/09/2012 - 14:52 | 2410844 Joebloinvestor
Joebloinvestor's picture

Have they moved the gold yet?

As soon as that happens, watch the EU tell Greece to go pound sand.

Go ahead and base the Drachma on a "promise to pay"....

Might actually be worth something although a Greek promise is just a state of mind.

Wed, 05/09/2012 - 15:14 | 2410943 The Swedish Chef
The Swedish Chef's picture

Yeah, like the new Drachma would be backed by their puny gold holdings... If that happened, you´d see that gold flying in to Soros vault so fast it would defy the laws of physics.

Wed, 05/09/2012 - 14:54 | 2410845 FrederickTheGreat
FrederickTheGreat's picture

Greece is a storm in a teacup. New elections in June will return many voters back to pro-bailout parties. This election was just a onetime shock. Almost nobody really wants a default and the drachma back. PASOK will win and get 50 seats as a free bonus. A majority with ND will continue to implement austerity and the euro will live on.

Wed, 05/09/2012 - 15:25 | 2410967 MrNude
MrNude's picture

The problem is you don't really fuck around with these kind of people and they already did that with the George Papandreous referendum and look at how that turned out and now this?





Wed, 05/09/2012 - 15:33 | 2411022 FrederickTheGreat
FrederickTheGreat's picture

No matter, the new June elections will set it all straight. Euro will survive. By the time the Euro2012 football starts, this will all be forgotten.

Wed, 05/09/2012 - 15:56 | 2411129 kanenas
kanenas's picture

Football: EURO2012 starts June 8th, with the match of Poland vs Greece

Politics: Elections will probably be the 17th of June.

Politics: It will probably take a 3 days to set up an anti-Troika government. Say, 20th of June.

Politics: And a couple more to vote for a law against Troika's guidance. Say, 22nd of June.

Football: If in First Round Greece finishes second in its group, and Germany finishes first in its group they will meet on June 22 for qualifiers. 

Wed, 05/09/2012 - 16:19 | 2411207 FrederickTheGreat
FrederickTheGreat's picture

By then, the Greeks will have restored a pro-euro government. Predictable world we live in.

Wed, 05/09/2012 - 16:54 | 2411311 MS7
MS7's picture

No way will  they ever vote for PASOK again. New elections will mean an increase of votes for the 2 top anti-austerity parties (people supporting the lesser austerity parties will see they have more power by voting together). Unfortunately I think the EU knows this and the pwers that be will do all they can to force a coalition with New Democracy at the helm while they still can. I don't understand why they had elections at this time, knowing the big parties would lose-- it was too much of a gift to the people. And you know what they say about Greeks and gifts.

Wed, 05/09/2012 - 14:54 | 2410849 carbonmutant
carbonmutant's picture

The Banks need the money more than Greece.

This is just grandstanding...

Wed, 05/09/2012 - 14:59 | 2410885 youngman
youngman's picture

WOW...this is the ECB is holding back 1 billion......but giving them 4.2 billion to a country that has elected people who have said they will not pay anything back....again....I must have missed this chapter in Econ 101....or was it business ethics class...this is getting very very funny....and I mean in a comedy way....also in a very weird way....sends shivers down my spine..

Wed, 05/09/2012 - 15:10 | 2410926 Tenshin Headache
Tenshin Headache's picture

Oh I see! You must think that these 1's and 0's won't just be paid across to the creditors - European banks and the ECB.

Well, it will. No 1's and 0's for Greece.

Wed, 05/09/2012 - 15:03 | 2410900 David DeGerolamo
David DeGerolamo's picture

1 billion divided by 5.2 billion = 19%. Isn't that the percentage of the bailout that actually goes to Greece instead of banks?

Wed, 05/09/2012 - 15:07 | 2410917 Shleprock
Shleprock's picture

Can we just have a 20% correction already.  Momma needs new shoes!

Wed, 05/09/2012 - 15:15 | 2410947 unrulian
unrulian's picture

while everyone elses mom sells theirs for food stamps

Wed, 05/09/2012 - 15:13 | 2410933 The Swedish Chef
The Swedish Chef's picture

To friggin bad that the people in charge in Greece right now doesn´t give a flying fuck about Troika money. If the money is withheld, the Greek state collapses and they have to go back to the day jobs (day unemoloyment) they held until last week, they will be remebered as Greek heros and will stand a far better chance at a political career than those traitors in New Democracy and PASOK.


PASOK and the old aristocracy did care about threats, they were fat and well dressed thanks to their compliance. These new guys? I don´t think they could care less...

Wed, 05/09/2012 - 15:21 | 2410958 ThirdWorldDude
ThirdWorldDude's picture

Tsipras has the ball now! Both Samaras and Jabba went out of the meeting with SYRIZA's leader with tears in their eyes, cursing the "young radical" for not bending his back and accepting to keep Grease on the belt-tightening track...


I think Tsipras is fully aware that he's got nothing to lose, because ultimately it's the creditors that will be fuk'ed if Greece doesn't make the payment next week. Just imagine if the kid is so smart to take the money on thursday and announce "bye bye Brussels" on friday! He'll send half the EU in the same hole that he's in.


Let's see what his spine's made of.

Wed, 05/09/2012 - 18:08 | 2411490 konfan
konfan's picture

Its going to be a fun ride,either way.


Wed, 05/09/2012 - 15:22 | 2410962 israhole
israhole's picture

When they say disbursed, they mean printed.

Wed, 05/09/2012 - 16:28 | 2411062 FrederickTheGreat
FrederickTheGreat's picture

Greece is a storm in a teacup. This time they voted with anger in their hearts. Next election, they will vote with their clear minds. The death of the euro has been announced so many times. It will resurrect from its grave again.

Wed, 05/09/2012 - 16:32 | 2411243 worbsid
worbsid's picture

I lived in Greece a number of years ago and I wouldn't be surprised if they didn't just say "Screw You Guys".  Spartans are real to the Greeks and so is Marathon and so was the German occupation. Jeeze, they will be back to full time Resina. yuk.

Wed, 05/09/2012 - 20:58 | 2411849 covert
covert's picture

hire greek hookers.



Wed, 05/09/2012 - 18:32 | 2411549 drider
drider's picture

It is simple tactics... since Venizelos is responsible for forming a government after Tsipra's turn, the european elites just provided him with enough leverage to do so. In any case they think so!

The local media will also try to scare people (there will be no salaries/pensions etc) but I don't think it will work this time...

Thu, 05/10/2012 - 00:52 | 2412266 WallowaMountainMan
WallowaMountainMan's picture

i thnk greece should hold out for less.

Thu, 05/10/2012 - 02:09 | 2412350 crazyivan5-0
crazyivan5-0's picture

So here's my question...while our attention is diverted with this latest "Euro crises", who and, where are we getting the screws put to us somewhere else? Because it's a virtual certainty that that's EXACTLY what is happening! "Distract 'em with this over there so we can F%&K 'EM over here while they aren't paying attention!"

Ain't life grand!

Sun, 05/13/2012 - 23:18 | 2422629 qiongqiong
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