It's Official: Greece To Pay May 15 Bond Maturity

Tyler Durden's picture


Earlier, we reported on media speculation that this was a done deal. We now get confirmation.


In other words, just as Zero Hedge predicted in January, non-Greek law bondholders, who did not comply with the PSI, had all the leverage.

And by the way, this is not Greece masking the decision. This is the international bondholder community strong-arming Greece behind the scenes, as non-payment on strong covenants bonds would be tantamount to a null and voiding of virtually the entire strong covenant sovereign bond market instantaneously.

And again: congratulation to all those who were not Steve Rattnered into agreeing to the PSI, and held out: the 135% annualized return is worth it. Just keep this in mind when the PSIs of Portugal, Ireland, Spain and Italy take places next.

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Tue, 05/15/2012 - 10:49 | 2426973 slaughterer
slaughterer's picture

Thank you Greece.  You know where to send the money.  

Tue, 05/15/2012 - 10:50 | 2426986 Silver Bug
Silver Bug's picture

The Can has been kicked just a little farther.

Tue, 05/15/2012 - 10:53 | 2426993 Doubleguns
Doubleguns's picture

At this point the kicking is just around the cul-de-sac, not really going anywhere.

Tue, 05/15/2012 - 10:56 | 2427022 Aziz
Aziz's picture

The international bond market can strongarm anyone they like, but if you don't have the money you can't pay.

Tue, 05/15/2012 - 11:05 | 2427049 The Big Ching-aso
The Big Ching-aso's picture



"Man who pay debt today he can't afford go broker tomorrow."



Tue, 05/15/2012 - 13:21 | 2427947 Thomas Anderson
Thomas Anderson's picture

So the ECB and the outgoing Greek leadership guarantee debt repayment, the "bailout" is for the banks.  I'm sure once all or most of the banks who've agreed to the haircut on their Greece holdings are repaid by easy money from the ECB/German taxpayers, there'll be a default and not 1 cent will have gone to the Greek people.  The Ponzi scheme continues...

Tue, 05/15/2012 - 10:50 | 2426977 Cognitive Dissonance
Cognitive Dissonance's picture

I heard they found some loose change in the bottom of the cookie jar. I paid my mortgage last month with what I found in the living room sofa cushions.

Tue, 05/15/2012 - 10:56 | 2427006 t_kAyk
t_kAyk's picture

It was buried under all the garbage in the basement of the Athens Ministry of Finance. 

Tue, 05/15/2012 - 10:55 | 2427015 Manthong
Manthong's picture

You have to wonder where the real Greek back door is.

Tue, 05/15/2012 - 13:12 | 2427898 chinaguy
chinaguy's picture

Don't worry "the check's in the mail" - LOL

Tue, 05/15/2012 - 10:48 | 2426978 midgetrannyporn
midgetrannyporn's picture

Pay your overlords.

Tue, 05/15/2012 - 11:04 | 2427047 Cognitive Dissonance
Cognitive Dissonance's picture

Jesse James says.......

Pay up...

Tue, 05/15/2012 - 11:01 | 2426979 carbonmutant
carbonmutant's picture

Up next, bondholder litigation

Tue, 05/15/2012 - 11:07 | 2427066 Zero Govt
Zero Govt's picture

Up next, bondholder liquidation/s

Tue, 05/15/2012 - 10:50 | 2426980 mayhem_korner
mayhem_korner's picture



To me, THIS is a credit event.

Tue, 05/15/2012 - 10:52 | 2426987 walküre
walküre's picture

How did they pay? Did the shipping oligarchs or the church leaders come to the rescue? Nobody else has any money.

Which Finance Min. is in charge? I thought they'd be without a government for now?


Tue, 05/15/2012 - 10:54 | 2427001 Doubleguns
Doubleguns's picture

Dont worry he will be charged with theft soon enough.

Tue, 05/15/2012 - 10:54 | 2427011 GeneMarchbanks
GeneMarchbanks's picture

'How did they pay?'

That's the very beauty of the creditmoney system.

Tue, 05/15/2012 - 10:59 | 2427028 walküre
walküre's picture

Not that easy to do. ECB didn't come in guns blazing and making the payment.

So .... Greece HAS (some) money if they've got no other option BUT to make the payment.

Wondering if starving and austerity impoverished Greeks understand this?

Tue, 05/15/2012 - 11:08 | 2427076 GeneMarchbanks
GeneMarchbanks's picture

Perhaps. If you rule out outside involvement, then sure.

I, for one, do not believe in some fabricated story of 'secret' Greek capital, in the Church or otherwise. Who profits from having obscurantist 'money'? Hint: It ain't the church.

Tue, 05/15/2012 - 11:39 | 2427239 walküre
walküre's picture

It's a fact that the shipping oligarchs and the church are sitting on billions of cash. Most is parked outside Greece.

The church is tax exempt which is quite common, but the shipping oligarchs are tax exempt also.

Both groups are pretty well the largest owners of Greek assets and wealth. Wonder why?

Outside involvement is possible of course. But the people will demand to know how this payment was made TODAY when the country is officially bankrupt or close to it.

Someone will have to explain to them where the money came from. If that someone says, the payment came from the public purse that someone might as well hide for the rest of his / her life. If he/she says the money came from outside, then all other lenders will want to find out how that was possible.

So what are they going to tell the Greek people and the rest of the world? They can't hide this forever. Making the payment was a crucial mistake imo.

Tue, 05/15/2012 - 11:10 | 2427078 Zero Govt
Zero Govt's picture

probably not. Cue another riot

Tue, 05/15/2012 - 10:51 | 2426995 ZeroPower
ZeroPower's picture

ZH, ahead of the curve as per usual.  

Tue, 05/15/2012 - 10:52 | 2426997 Fox-Scully
Fox-Scully's picture

I wonder where they got or will get the money?  Should we ask Ben?

Tue, 05/15/2012 - 10:54 | 2427002 cdevidal
Tue, 05/15/2012 - 10:53 | 2427005 carbonmutant
carbonmutant's picture

Looks like Juncker was right. "When it gets serious you have to lie"

Tue, 05/15/2012 - 10:55 | 2427008 Vince Clortho
Vince Clortho's picture

We all know where the "money" came from.

The show must go on.

Nothing is going to change until there are a sufficient number of people in the streets.

Tue, 05/15/2012 - 10:54 | 2427009 Cognitive Dissonance
Cognitive Dissonance's picture

"And again: congratulation to all those who were not Steve Rattnered into agreeing to the PSI, and held out: the 135% annualized return is worth it. Just keep this in mind when the PSIs of Portugal, Ireland, Spain and Italy take places next."

Can I get in on some of that action? I have $50 from my paper route to blow.

Tue, 05/15/2012 - 11:36 | 2427220 Arius
Arius's picture

you got to incorporate into a bank first ...

Tue, 05/15/2012 - 12:04 | 2427416 Cognitive Dissonance
Cognitive Dissonance's picture

Working the problem. Please hold.

Tue, 05/15/2012 - 10:56 | 2427014 Paper CRUSHer
Paper CRUSHer's picture

...........dammit that Wimpy dude was is tuesday.

Tue, 05/15/2012 - 11:28 | 2427172 crawldaddy
crawldaddy's picture

yeah but wimply is still hungry.

Tue, 05/15/2012 - 10:55 | 2427018 Winston Churchill
Winston Churchill's picture

New verb added to ZH dictionary.

Rattnered :Verb,past tense; stolen :see  corzined.

Tue, 05/15/2012 - 10:59 | 2427035 junkyardjack
junkyardjack's picture

Is this bullish?

Tue, 05/15/2012 - 11:11 | 2427083 Zero Govt
Zero Govt's picture

nope, the bear is just taking a quick nap

Tue, 05/15/2012 - 11:00 | 2427038 Snakeeyes
Snakeeyes's picture

Good news, I guess. But look at the chart of OTHER Greece debt maturity.

Greece just excercised an option to default on future debt.

Tue, 05/15/2012 - 11:05 | 2427054 walküre
walküre's picture

I wouldn't bet on it.

When they need the money, they can find it somehow, somewhere from someone.

In the meantime, they go begging thou neighbours to pay the bills.

Greeks are crooks and shysters. Germany should cut them off the EU pronto and set the example.

Tue, 05/15/2012 - 11:09 | 2427040 Dr. Engali
Dr. Engali's picture

So once again intead of doing the right thing for the country the leaders of Greece decide to screw their people further.


 BY the way to all you are welcome for the money to pay your debts.


            An American Middle Class Tax Payer.

Tue, 05/15/2012 - 11:41 | 2427262 johnnynaps
johnnynaps's picture

Also signed by my one-year old daughter.

Tue, 05/15/2012 - 11:06 | 2427057 Mugatu
Mugatu's picture

I bet the ECB had a cattle prod up the Greek Finance Minister's ass to get them to do this.  ECB must be worried about all those insolvent bank's collateral if Greece went into technical default.  


Tue, 05/15/2012 - 11:11 | 2427086 jmcadg
jmcadg's picture

Did they find the money under the rubbish in the Finance Ministry's room. Maybe there are some gold sovereigns under there too.

Tue, 05/15/2012 - 11:21 | 2427120 Village Smithy
Village Smithy's picture

Let's wait until the parties that are owed the money tell us that they have been paid. Until then I wouldn't believe a thing I read.

Tue, 05/15/2012 - 11:25 | 2427143 Kaiser Sousa
Kaiser Sousa's picture

It's really quite simple....the Greek citizens should just murder the politicians owned by the bankers, and then tell said bankers to FUCK OFF.... the aversion to freedom baffles me....

Tue, 05/15/2012 - 11:30 | 2427189 Peter K
Peter K's picture

Rules is rules :)

Tue, 05/15/2012 - 11:50 | 2427300 slackrabbit
slackrabbit's picture

until they are passed retropectively ...

Tue, 05/15/2012 - 11:47 | 2427285 slackrabbit
slackrabbit's picture

Only the lawyers won in this last ponzi. I bet most know they wont make this type of money again....well until the next time ;-)

Tue, 05/15/2012 - 12:17 | 2427528 Nobody For President
Nobody For President's picture

Hey, 435 million euro down, only 6.2 billion to go - piece of cake!


Unleash Sausage!

Tue, 05/15/2012 - 14:43 | 2428316 Watson
Watson's picture

When the news of this event makes it to the average Greek citizen, that citizen going to think:

1. My (savings/pension fund) owned some of the Greek law bonds, which have lost most of their value; however
2. My pain is not shared by the (foreign) hedge fund managers who owned most of the foreign law bonds, because they have just been paid in full.

Isn't this the stuff of revolutions?

Tue, 05/15/2012 - 15:54 | 2428681 John Wilmot
John Wilmot's picture

You know, if Greece could just charge a commission on all the money flowing through it, from Northern Euro taxpayers to Northern Euro banks, it might have a chance balancing its budget...

Tue, 05/15/2012 - 17:10 | 2429005 Herkimer Jerkimer
Herkimer Jerkimer's picture

When the rules only get to be applied when people feel like it, there are no rules.


The take-away on this is, I'd be takin' my marbles off the sovereign debt table and going home.


This is the biggest non-news of the day. The week?!


And while not pertinent now, when it comes time for the rest of the PIS on the plate then we'll see who's laughing.



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