Greece's Euro Exit Seems Inevitable - page 6
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Greece Races to Bridge Gap With Creditors Before Debt Bill
Greece and its international creditors remain apart on key elements of the country’s bailout agenda even as they work to bridge differences in a bid to avert a default as early as this month.
In discussions since Thursday, it wasn’t yet clear the two sides would make enough progress to clinch a deal in time for the planned May 11 meeting of euro-area finance ministers, some officials warned.
“They’re working hard now and that’s what we’ve gained,” Dutch Finance Minister and Eurogroup President Jeroen Dijsselbloem told reporters in the Hague on Friday. “But in the end we only look at the results and we’re not that far yet.”
Greek Prime Minister Alexis Tsipras told his cabinet on Thursday he’s confident of closing a deal, even as his government sent conflicting signals on its willingness to agree on reforms required under the 240 billion-euro ($268 billion) bailout. While the government is working hard to get a deal as soon as possible, it will draw the line on matters such as labor market reforms and cuts to wages and pensions, government spokesman Gabriel Sakellaridis said on Saturday.
Faced with debt payments totaling about 1 billion euros to the International Monetary Fund on May 6 and May 12, Greece hopes there will be enough progress in the talks by next week to allow the European Central Bank to restore liquidity access to the country’s cash-strapped banks.
Shares Jumped
Optimism that a deal to unlock financial aid for Greece is close after months of talks put the country’s assets among the region’s best performers in April. The Athens Stock Exchange Index of shares jumped the most by the end of April since September 2012 from a two-year low on April 21. It ended up 6.1 percent in April, the biggest rally in western Europe. Bonds returned 13 percent, as securities across the region fell.
Greece and its creditors stepped up efforts to break the impasse with a target to reach a deal by Sunday, three people with knowledge of the talks said earlier this week.
“One thing from the history of the euro crisis that we know is that all of these deadlines can shift, but if there is an actual deadline they will make a decision beforehand,” Christian Schulz, an economist at Berenberg Bank, said in a Bloomberg TV interview on Friday. “They’re still miles apart on pretty much everything.”
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Greece is not going to exit EU
They are just used to teach a lesson for others that think that way - and to show what will happen to them if they try to exit EU
The worse thing Greece can do is to stay in EU
The worse thing Greece can do is to stay in EU
Even worse would be if they default and stay in the EU - they would be slaves of EU bosses for the next 100 years then
Even worse would be if they default and stay in the EU - they would be slaves of EU bosses for the next 100 years then
They already are
Greece makes €200 million payment to IMF
Greece has made a loan repayment to the International Monetary Fund of 200 million euros ($224.9 million), Reuters reported Wednesday, citing a Greek official. Greece now faces a €750 million ($832 million) debt repayment to the IMF due May 12, but there are fears it will run out of cash unless it reaches a deal with creditors to unlock the next tranche of bailout money. Late Tuesday, Athens officials blamed differences between its lenders, the IMF and the European Union, for the holdup in the debt talks, the Guardian reported.
Greece will default in June or July. Here is the breakdown in cold hard numbers
GREECE – WE CAN DO THE MATH NOW, GREEK DEFAULT BY EARLY JUNE/LATE JULY!
11 May 2015 Last change to release €7,000 million/€7 billion from ECB
12 May 2015 €0,774 million IMF
05 June 2015 €0,310 million IMF
12 June 2015 €0,348 million IMF
16 June 2015 €0,581 million IMF
19 June 2015 €0,348 million IMF
30 June 2015 A four-month extension on bailout agreement expires.
13 July 2015 €0,465 million IMF
19 July 2015 €0,199 million ECB Maturity Gov’t Bonds
19 July 2015 €0,104 million ECB Maturity Gov’t Bonds
20 July 2015 €3,500 million ECB Maturity Gov’t Bonds
IMF
12 May 2015 €0,774 million IMF
05 June 2015 €0,310 million IMF
12 June 2015 €0,348 million IMF
16 June 2015 €0,581 million IMF
19 June 2015 €0,348 million IMF
13 July 2015 €0,465 million IMF
___________________________________________+
13 July 2015 €2,709 million ~ €2.7 billion IMF TOTAL
ECB
19 July 2015 €0,199 million ECB Maturity Gov’t Bonds
19 July 2015 €0,104 million ECB Maturity Gov’t Bonds
20 July 2015 €3,500 million ECB Maturity Gov’t Bonds
___________________________________________+
20 July 2015 €3,803 million ECB Maturity ~ €3.8 billion ECB TOTAL
___________________________________________+
___________________________________________+
20 July 2015 €6,512 million ~ €6.5 billion TOTAL
So Greece needs €6.5 billion by 20 July 2015.
Prime Minister Alexis Tsipras ordered municipalities to transfer funds, estimated at about €1.5 billion, to the central bank.
12 May 2015 €0,774 million IMF
05 June 2015 €0,310 million IMF
12 June 2015 €0,348 million IMF
___________________________________________+
12 June 2015 €1,432 million ~ €1.4 billion IMF TOTAL
16 June 2015 €0,581 million IMF
___________________________________________+
16 June 2015 €2,013 million ~ 2.0 billion IMF TOTAL
Bottoms Up Line: With €1.5 billion they only can make it to12 June 2015 and by 16 June 2015 they need a total of €2,013 million to the IMF.
So, we savely can make the conclusion from these numbers that by June it’s ‘Game Over’ for Greece and certainly by July cause numbers don’t Lie. And that rhymes
Because even if they recieve the €7 billion bailout from the ECB at 11 May 2015 Greece is only ‘saved’ till 20 July 2015 when €6.5 billion payment is due after which the whole shebang can start again.
Greece owes a total of €324,000 million /€324 billion to the IMF, ECB, and Euro-Zone governments.
SOURCES:
Greece’s Scary Calendar of Debt Payments Due
Greece’s Scary Calendar of Debt Payments Due - Bloomberg Business
The ‘Relentless’ Greek Debt Payment Schedule
The 'Relentless' Greek Debt Payment Schedule | Zero Hedge
Greek Payback Math at 0% Interest (MISH’S Global Economic Trend Analysis)
Mish's Global Economic Trend Analysis: Greek Payback Math at 0% Interest
THE AFTERMATH
If the ECB release the €7 billion, €2.7 billion will go directly to the IMF and the €3.8 billion is a ‘free’ cigar from ECB’s own cigar-box.
Obviously it’s the €2.7 billion to the IMF which is bothering the ECB the most since they also know that Greece can default any day now.
In their frantic delusional disparity they ask Greece to do inhuman things which is totally ridiculous.
Dreadful Draghi helped this evil scheme by cutting off Greece’s liquidity. Blackmailing them.
Why else would they negotiating in bad faith and try to murder Varoufakis’ character by calling him names and trying to by pass him?
“As a payments squeeze slowly crushes Greece, it is becoming increasingly apparent that its foreign lenders, led by an unbending European Union, are negotiating in bad faith.
In fact, they are not negotiating at all, but simply insisting that an agenda of destructive policies rejected by Greek voters nonetheless be adhered to.”
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I wonder what does the Troika tell about the above figures
Germany's Schaeuble says Germany will do everything possible to keep Greece in Eurozo
German fin min Mr Happy giving an interview to FAS ( Frankfurter Allgemeine Sonntagszeitung) to be published tomorrow
That's a bit rich
"Experience elsewhere in the world has shown that a country can suddenly become unable to pay its bills"
Not exactly a well-disguised shot at Greece
Greece calls on EU/IMF lenders to show political will for deal
Greece's main debt negotiator called on the European Union and the International Monetary Fund to show their willingness to break an impasse in debt talks, ahead of a crucial meeting of euro zone finance ministers on Monday.
Prime Minister Alexis Tsipras' leftist-led government, which came to power promising to end the austerity terms under Greece's existing 240 billion euro debt deal, has been locked for months in talks with its foreign lenders over reforms that could unlock much needed bailout funds.
"Any delay in achieving this compromise has to do with one and only one reason, and this is the political differences between the government and the institutions," Euclid Tsakalotos, Greece's newly appointed coordinator of the talks, told Avgi newspaper.
With bailout aid frozen while it is shut out of debt markets, Athens risks running out of cash unless a deal is reached soon.
"After weeks of laborious negotiations, if there is a real will from the other side, it will be clear that the discussion has reached a level where an agreement is very close and will be reached in the coming period," Tsakalotos said.
Athens' foreign creditors are demanding further austerity in exchange for funds, while an angry Greek public has felt the pain of income cuts amid a six-year recession.
A poll by MRB for Sunday's Realnews showed that 72 percent of Greeks wanted what Athens calls an "honorable compromise", meaning concessions from both sides to reach a deal. A Marc survey showed that 57 percent wanted Athens to stick to its "red lines" on pension and labor reforms.
Tsipras will hold a wider cabinet meeting on Sunday, a day before euro zone finance ministers discuss progress made so far in the negotiations.
Greece needs to pay a 750 million euro IMF loan this week and pensions and public sector wages at the end of the month, and Athens hopes for the European Central Bank to allow Greece to raise cash by issuing more Treasury bills.
"It's now the political side that must offer a solution," Economy Minister George Stathakis told Avgi.
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