And it was all looking so great based on the market's all-knowing discounting mechanism of kneejerk-reacting algos.
Despite Merkel's comments on "no discussion of restructuring" and Schaeuble's dysphoria over the proposals, a Greek Minister's overconfident "Greece is rescued" comment is about to be crushed by Lagarde's heavy hand:
- IMF DISAGREES WITH GREECE ON CORPORATE TAX, VAT AND PENSIONS - EU SOURCES
More from Marketnews which reported the latest IMF disagrement:
- EXCLUSIVE: GREECE JUNE IMF PAYMENT CAN BE COVERED WITH SMP PROFITS-SRCS
- IMF DISAGREES WITH GREECE ON CORPORATE TAX, VAT, PENSIONS
- CREDITORS CURRENTLY MULL 6-MONTH EXTENSION FOR GREECE
- GREECE EXTENSION ATTACHED WITH PRIOR ACTIONS, REFORMS
- IMF, COMMISSION STILL HAVE DIFFERENT APPROACH ON GREECE
Greece will be able to quickly tap previously committed bailout cash to pay the International Monetary Fund next week if it's able to reach an agreement with its creditors, senior EU sources have told MNI, but the Fund remains ironically one of the country's toughest critics in the ongoing negotiations.
And from the WSJ:
But the IMF is still unhappy with key aspects of Greece’s new economic proposals and German officials were irritated by the speed with which the commission welcomed them, warning that much work needs to be done.
Greece’s plan calls for reducing the deficits in its pension system and government budget by relying heavily on raising taxes and social-security contributions, whereas the IMF wanted bigger spending cuts.
The Washington-based IMF has said Greece’s economy is already too heavily taxed and that too many additional tax increases would hurt economic growth, making it harder to pay down Greece’s debt.
“It is still short of everything that should be expected,” IMF Managing Director Christine Lagarde said Monday, suggesting Greece will have to modify its proposals significantly to win the IMF’s backing.
IMF representatives have told European officials that they are also not satisfied yet by Greece’s broader economic overhaul plans beyond its budgetary promises. The IMF sees a wider, business-friendly shake-up of Greece’s economy as essential if the country is to improve its long-term economic growth.
Yeah - but as they say - apart from that The IMF loved the Greek Proposal!?
However, even if this were to be agreed by The IMF, there is stil Zee Germans who just threw another "ball is in your court" wrench in the plans:
- GERMAN PARLIAMENT WON'T VOTE UNTIL GREEK LAWMAKERS APPROVE DEAL
Back to you Tsipras.