After Greece realized that it is not America, which can pretend it will do an infinite does of austerity... just not today... and not tomorrow...and really everything will be back-end loaded to some point 9 year from now (when it is some "other administration's problem") and the IMF made it clear that cuts have to happen immediately if not sooner, the country has released a statement that in exchange for getting the latest round of Troika funding (which it needs desperately: recall that it has another €2 billion debt paydown this Friday), it will front-load some of those mythical austerity measures that otherwise would have never really occurred. Which means that strikes (most notably by the tax collectors), riots and all around fun is about to become the prime time TV highlight from Syntagma square all over again, as tens of thousands of more government workers are fired or furloughed, or just generally lose their pension benefits, courtesy of living in an insolvent country. In the meantime, the European banks can pretend the contagion from a Greek fall out will be contained and the Fed's infinite swap lines will mask any and all completely unexpected black swans. Best of luck with that.
Greece has agreed to front-load austerity measures and is close to securing a deal with its international lenders, a Finance Ministry official said on Tuesday.
"I feel confident that the next tranche will be disbursed. We are close to clinching a deal with the troika," the official told Reuters, speaking on condition of anonymity.
And in other news, while the IMF did succeed to call Greece's bluff, it still hasn't shown its hand. And it won't, but not until October as was reported earlier, but next week. Which means this week's next bond payment will once again put the market on edge.
The mission of top inspectors from Greece's international lenders will return to Athens early next week to resume its review of the country's progress in a 110 billion euro ($150 billion) bailout programme, a source close to the team said on Tuesday.
The representatives from the European Union, International Monetary Fund and European Central Bank had earlier held a conference call with Greece's finance minister on steps Greece must take to receive an 8 billion euro aid tranche it needs to avoid running out of cash next month.
The source close to the so-called troika said good progress was made during the call and technical discussions would continue in Athens in the coming days.
In other words: nothing is settled, daily headline risk remains, except that the Greek government should immediately start charging royalty payments for RiotVisionTM, which in this next coming iteration should be quite a spectacle.