With Greece Back Down To Just €2 Billion In Cash, Zeit Suggests A Third Greek Bailout May Be Coming

Tyler Durden's picture


Shifting away from the theatrical travesty for a moment, we move to the other such travesty: Europe, where while nothing has been fixed, despite what the BIS is trying to do with the EURUSD which is now up 100 pips in a straight line since the Dimon testimony started, we find that while the world is concerned about Greek elections, the real gamechanger may be the old and known one: Greek cash, or the lack thereof, and more specifically yet another bailout for the country. RTE reports that as of today Greece has about €2 billion in cash left, pro forma for the recent cliffhanger cash infusion from Europe which almost did not come, which is expected to last the country for just about one more month.

From RTE:

"Greece has about €2 billion to pay salaries and pensions until July 20, media reports said today. The finance ministry declined to comment on the reports. Greece is heading into a Sunday election which could lead to it leaving the euro zone."

Of course, there is the natural probability that this is merely electoral propaganda: "Greece's European peers have warned Athens in stark terms that further loan payments could halt if promised reforms, including an unpopular privatisation drive, falter. Should this happen, many analysts warn that Greece could be forced to ditch the euro and print its own currency to pay pensions and salaries." Oddly, this is despite Spain proving to the world that one has much more leverage when demanding bailouts in the context of preserving Europe. And the irony is that this may not be enough. As Greekreporter informs us : "Greece might soon need a third financial aid program from its Eurozone peers, the German weekly Die Zeit reported Wednesday, citing unnamed financial and government sources. As Greece has fallen behind the goals of the consolidation and reform program agreed with the EU and the IMF, especially regarding tax revenue and privatisation proceeds, discussions are underway in the EU to give the country more time to reduce its deficit, the paper said." In other words 2012 is 2011 is 2010 is 2009 is 2008: the bailout wagon rolls along, while the "other people's money" is getting ever less and less and less.


In order to extend the deficit-reduction timetable, Greece would need tens of billions more in aid, Die Zeit said. The German parliament might already have to deliberate on a new program this summer.


Eurozone officials have told MNI that if the new Greek government shows sincere commitment, “some adjustments could be made to the bailout program.”


The sharp deterioration in the country’s growth outlook leaves room to extend the period for the consolidation effort, one source noted. The working scenario has been for an extension of two years, which means Greece would have to bring its deficit down to 3% of GDP by 2016 instead of 2014, the official said.


“It is a well known secret in Brussels that the E130 billion second bailout program won’t be enough,” another source said

To paraphrase: this means a third Greek bailout will be needed even if New Democracy, which too has promised to renegotiate the memorandum.

This summer will be interesting.

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Wed, 06/13/2012 - 11:53 | 2521998 Magnix
Magnix's picture

Why are they sending more $ to Greece? Fk them already!

Wed, 06/13/2012 - 12:11 | 2522068 Sudden Debt
Sudden Debt's picture

Because it doesn't go to greece but to the german and french banks at the expense of greece and the rest of europe who'll have to pay interest on it untill the end of time.

Wed, 06/13/2012 - 12:18 | 2522103 malikai
malikai's picture

Seriously, just let me borrow another $20. I'll pay you back..

Wed, 06/13/2012 - 12:24 | 2522112 Manthong
Manthong's picture

There's plenty of funny money to go around.


"You don’t say when you are in an emergency situation, because then you make the situation worse. So I really don’t see the usefulness of being more transparent,” Luc Coene, Belgium’s central bank governor, explained in a Financial Times interview this month."

Wed, 06/13/2012 - 12:35 | 2522161 Sudden Debt
Sudden Debt's picture



Wed, 06/13/2012 - 12:25 | 2522122 disabledvet
disabledvet's picture

Sounds like you need a new Contintent then. How does "Europa" sound? With "Europa bonds" and "Billy-bob bucks"? I mean if we're gonna have funny money it should at least make us laugh!

Wed, 06/13/2012 - 12:37 | 2522170 Sudden Debt
Sudden Debt's picture

We had that in the past... We called it the New Continent...
Weird people...
They wanted to turn the sea into a big cup of tea so we said we didn't wanted to have anything to do with them anymore!

Wed, 06/13/2012 - 12:53 | 2522219 John Law Lives
John Law Lives's picture

Something is rotten in the state of Denmark...

Wed, 06/13/2012 - 13:07 | 2522275 johngaltfla
johngaltfla's picture

Greece has decided to implement limited capital controls to preven the average person or businessman from shipping the cash out. And it ain't pretty:


Report from Greece: Limited Capital Controls Implemented
Wed, 06/13/2012 - 12:20 | 2522109 TheGardener
TheGardener's picture

Quoting Zeitgeist chasing liberal leaning far left speaking
Die Zeit is a first for ZH , I suppose.

Good luck dancing with the devil.

Wed, 06/13/2012 - 12:31 | 2522141 azzhatter
azzhatter's picture

Greece needs the money to pay Douchebank

Wed, 06/13/2012 - 13:22 | 2522319 pop goes the weasel
pop goes the weasel's picture

keep the lay ons coming

Wed, 06/13/2012 - 11:55 | 2522000 Everybodys All ...
Everybodys All American's picture

Bailout? I thought they were now funding Spain's bailout.

Wed, 06/13/2012 - 12:08 | 2522062 Al Huxley
Al Huxley's picture

Yes, but now that Spain's been fixed, they can bail out Greece (who presumably will then be able to bail out Italy, who will subsequently be able to bail out France...)

Wed, 06/13/2012 - 12:13 | 2522072 Sudden Debt
Sudden Debt's picture

And after that Greece can bailout Italy!


Wed, 06/13/2012 - 11:54 | 2522005 mayhem_korner
mayhem_korner's picture



If it was the U.S., that money would be gone by lunch.

Wed, 06/13/2012 - 12:15 | 2522086 Sudden Debt
Sudden Debt's picture

Yep, you guys ARE THAT GOOD!

Bon appetit! Like the french would say'!

Wed, 06/13/2012 - 12:16 | 2522090 Skateboarder
Skateboarder's picture

You mean for lunch, right? I love two billion dollar lunches.

Wed, 06/13/2012 - 12:37 | 2522175 Sudden Debt
Sudden Debt's picture

And 98 billion tips...

Wed, 06/13/2012 - 11:56 | 2522014 Jason T
Jason T's picture

collapse excellerating faster that bailouts can keep up..  

Wed, 06/13/2012 - 12:12 | 2522077 junkyardjack
junkyardjack's picture

Gold just crashed $10

Wed, 06/13/2012 - 13:15 | 2522295 ElvisDog
ElvisDog's picture

Yeah, wow, that is a dramatic plunge. Let's see, 10/1600 is about 0.625%. That would be the equivalent of a 60 cent "plunge" in oil. Time to bug out to my survival bunker .....

Wed, 06/13/2012 - 11:58 | 2522016 Cognitive Dissonance
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".....RTE reports that as of today Greece has about €2 billion in cash left...

Can Zero Hedge just pass the hat for Greece?

Wed, 06/13/2012 - 11:59 | 2522033 Temporalist
Temporalist's picture

Do you mean "bread helmet" to protect from falling bails of fiat from the Bail-o-copter?

Wed, 06/13/2012 - 13:50 | 2522120 slewie the pi-rat
slewie the pi-rat's picture

or even falling bales of bailing spooks while out on bail?

anyhow, i'magittin me a spaceway sour-dough round and will have guacamole frag balloons and banana clips of non-fat toasty chips when our belovedPrez0 sends out the checks!

slewie on a cruiseMissileSchwinn, armed with direct deposit!  L0L!!!

Wed, 06/13/2012 - 12:45 | 2522196 TheGardener
TheGardener's picture

Hell knows why you hold our helicopter saviour in such contempt. Who cares about rain or shine seriously and
even though I reduced my crops substantially I still have
a 200% surplus to make up for natures whims, excess gets fed
to the livestock. What you want the fiat weather man to do?

If all fails, he could try to drop gold bars on you doubters
heads instead of a comet`s worth of paper gold on so called exchanges .

And imagining myself up there in his tiny little thing
made in Torrance, CA, I would feel save and sound because
if all else fails, just quickly go into AUTOROTATION.

Wed, 06/13/2012 - 14:01 | 2522507 slewie the pi-rat
slewie the pi-rat's picture

torrance = jumping off a surf-crashed cliff w/a kite strapped onto yer back

nice and quiet, too

maybe some golf and water sports

lunch w/ robo?  you can buy & i'll autorotate a zigZag or 3

jobs?  inTorrance?  priceless!

Wed, 06/13/2012 - 12:04 | 2522050 CCanuck
CCanuck's picture

With all the Heavy hitting-high-rolling Bitchez here, it should take 2-3hrs...at most!

Ponzi-up Bitchez!

Wed, 06/13/2012 - 12:05 | 2522053 skistroni
skistroni's picture

CD, a hat won't do. 

We need a meteorite crater, preferably around 100m diameter. 

With a big hole in the middle.

Thu, 06/14/2012 - 05:23 | 2524769 skistroni
skistroni's picture

Yeah, Americans make impressive movies. 

And then they pay to get scared and eat popcorn.

Wed, 06/13/2012 - 12:32 | 2522147 azzhatter
azzhatter's picture

Call Dimon, it's chump change for JPM

Wed, 06/13/2012 - 11:57 | 2522018 Temporalist
Temporalist's picture
Greek Bank Deposit Outflows Said to Rise Before Elections

"Daily withdrawals have increased to the upper end of a 100 million-euro ($125 million) to 500 million-euro range this month, one banker said, asking not to be identified because the figures aren’t public. A second banker said the drawdown may have exceeded 700 million euros yesterday. An official for the Bank of Greece (TELL), the Athens-based central bank, declined to comment."


Wed, 06/13/2012 - 11:57 | 2522023 Ivanovich
Ivanovich's picture

EUR is up because the Dutch parliment voted in favor of the Spanish bailout.  Big whoopdeedoo.  Algos following, market moves.


Perfect fade.

Wed, 06/13/2012 - 12:02 | 2522038 skistroni
skistroni's picture

EVERYTHING written or reported in Greece these days, is propaganda for the elections, one way or the other. There's a ban on polls, but the political parties are allowed to conduct polls and keep the results for themselves. So they have a better idea of the expected result, and play games in order to swing the vote.

I do have a feeling that Syriza will win, because the moves of New Democracy in the last few days show despair. I am inclined to short the Euro at the close on Friday evening. 

Wed, 06/13/2012 - 12:15 | 2522083 Seize Mars
Seize Mars's picture

Do they use electronic voting machines?

Wed, 06/13/2012 - 20:17 | 2523966 nicxios
nicxios's picture


Wed, 06/13/2012 - 12:21 | 2522113 disabledvet
disabledvet's picture

How's the "I love Germans" party doing?

Wed, 06/13/2012 - 12:05 | 2522054 carbonmutant
carbonmutant's picture

The vote is likely to make this speculation irrelevant...

Wed, 06/13/2012 - 15:46 | 2522057 slewie the pi-rat
slewie the pi-rat's picture

L0L!!! antonioSam + V-man = the criscoKid & pancho?

this is a re-post>--> slewienimics 2E4UQT pop quiz!  Q1:  who tf sed:

Here at our __ headquarters, we remain sans soucis. Which is another way of saying, we’re enjoying the show. What will the fixers do next, we wonder? Every fix makes things worse. But they keep at it.

For the benefit of Dear Readers with skin in the game, we leave our “Crash Alert” flag up for a few more days. This market could go to hell in a hurry. If you’ve got skin in the game, get it out.

huh?  that is from yesterday as is Q2:  who tf sed:

In reply, he thrusts a copy of the Tampa Bay Times, my local laughably provincial leftist rag, which (as you would expect) carried an essay by Paul Krugman, a man whom I consider, with a particularly acid venom, one of the worst neo-Keynesian econometric halfwits in the known world, the shame of Princeton University, a shame he shares with Ben Bernanke, chairman of the loathsome, demonic Federal Reserve. 


Well, my eyes were kind of going in-and-out of focus by this time, but the adrenaline of my outrage soon focused my attention wonderfully when he demonstrated his insanity by pontificating that, even though it has been discredited for so long that it is beyond incredible that he would dare say it, "Our debt is mostly money we owe to each other."

answer to Q1 here

answer to Q2 here

everyone is completely shit-faced!  and that was only tuesday! 

bong-ho, BiCheZ! and keep buying tyler more drinks!

Wed, 06/13/2012 - 12:09 | 2522066 Rip van Wrinkle
Rip van Wrinkle's picture

Tell you, Tyler, don't start down this route. By the end of the year, you'll be filling the blog with fourth, fifth, sixth bailouts for Greece, eightth for Ireland, elevnth and twelfth for Portugal, third, fourth and fifth for Spain, seventh and eighth for Cyrpus, second, third and fourth for Italy and France will be asking for a bailout.


You won't have the manpower to cover anything else.

Wed, 06/13/2012 - 12:15 | 2522085 disabledvet
disabledvet's picture

The intersection of "Triumph of the Will" and "Financial Stand-up Comedy" is a strange place indeed. "whatever you do don't look inside the box."

Wed, 06/13/2012 - 12:11 | 2522073 CommunityStandard
CommunityStandard's picture

Why are we surprised by this?  Greece will never be able to raise money on its own, and it's citizens have stopped paying taxes.  Every Euro the country uses to operate from now on will need to come from Europe.

Wed, 06/13/2012 - 12:16 | 2522089 disabledvet
disabledvet's picture

And your point is?

Wed, 06/13/2012 - 12:12 | 2522074 lolmao500
lolmao500's picture


Wed, 06/13/2012 - 12:12 | 2522076 disabledvet
disabledvet's picture

And now you know the difference from a mere "bank run" and a run on an entire country's finances. Greece would need at least a trillion "to make it." and remember that the next time you spent 10 cents on a Greek olive people! That thing COULD have cost 11 cents but for the Germans!

Wed, 06/13/2012 - 13:06 | 2522082 carbonmutant
carbonmutant's picture

Greeks pulled their cash out of the banks and stocked up with food ahead of a cliffhanger election

...afraid a new government might change the rules...


Wed, 06/13/2012 - 12:16 | 2522087 lolmao500
lolmao500's picture

It doesn't really matter if they run out, as it has been posted many times on ZH, a lot of people in Greece have not been paid for the last 12 months +... so no big deal.

Wed, 06/13/2012 - 12:17 | 2522095 the 300000000th...
the 300000000th percent's picture

DUUUUHHHHHHH!!!!!!!!! as if they will ever pay back these three bailouts and start getting ahead one day. I feel like i am taking crazy pills

Wed, 06/13/2012 - 12:19 | 2522097 disabledvet
disabledvet's picture

The difference between being merely "funny" and "truly hysterical" is not just a question of semantics. (and let this be a lesson for those who think there is no truth in the world.)

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