Greece Effectively Defaults To IMF Using SDR Reserves To "Repay" Fund; 1 Month Countd
IMF is deliberately leading Greece to an abis
IMF is deliberately leading Greece to an abis
They got an offer to join BRICS. Looks like someone was wrong that the help can come only from one side
‘Pots of Money’ to Be Found for Greece to Pay IMF, Roubini Says
Economist Nouriel Roubini said he expects “pots of money” to be found to allow Greece to meet its payment commitments to the International Monetary Fund.
“Radical decisions like capital controls, like deposit freezes, like IOUs that have a lot of collateral damage, not just financially but also economic, can be prevented,” Roubini, chairman of Roubini Global Economics, said in an interview in Dresden, Germany, where he’s attending a meeting of G-7 finance chiefs.
Greece is scheduled on June 5 to make the first of about 1.6 billion euros ($1.74 billion) in IMF payments coming due in the next three weeks. Talks between Greek officials and the country’s international creditors over unlocking aid remain stalled.
If Greece fails to meet its payments, “everybody realizes that’s the beginning of a Greek accident that has lots of other collateral damage, not just for Greece but potentially contagion also in financial markets,” Roubini said in the Bloomberg Television interview on Thursday.
Two sides close to a deal as Greek creditors formulate a proposal
WSJ say a deal is closer as Greece's creditors get a plan togetherThe deal or no deal sage continues and the WSJ has reported that an agreement has been reached between the troika that will be put to Greece. It's yet to be presented to Greece but Bloomberg report that there's a proposal in substance
The devil will be in the details and we may still face deadlock if the Greek's don't accept what gets put on the table
The euro continues to rally as it grasps any news that has a possible positive slant on it. If Greece takes the deal the we're off and running
This is becoming boring. They should tell "we shall do this" or "we shall do that". Instead they are playing the usual political sharade
This is becoming boring. They should tell "we shall do this" or "we shall do that". Instead they are playing the usual political sharade
We shall see tomorrow : it is supposedly going to be ended tomorrow
Greece raises the stakes with punt on IMF payments
The June 5 'deadline' for a Greek deal has been punted once again and now June 14 is the new 'deadline'. Of course, the real deadline isn't until the money is all gone but that doesn't look far away as reports trickle in that Greece is attempting to defer three separate payments to the IMF until the end of the month.
What does it mean?
If Greece was confident of a deal, or its negotiating position, Tsipras would pay the money now. By delaying, he sends the message to creditors that he may not pay at all. It's an extreme game of chicken.
The problem for him is that Greece has far more at stake than the rest of the eurozone/EU. A genuine default would ravage the Greek economy, likely end his political career and probably force Greece out of the eurozone.
The euro -- despite the best two-day rally in 6 years -- is hanging tough today despite the 100 pip spike/reversal in European trading. But it sounds like Greek sentiment will get worse before it gets betterand that marked a short-term top for the euro.
AEP: The IMF is in very serious trouble
Ambrose Evans-Pritchard at the Telegraph takes down the IMF
AEP is out with his latest in an attack on the IMF, saying its credibility and long-term survival are at stake in the showdown with Greece.
He notes that Greece's decision to bundle payments until the end of the month was a technique last used in the 1980s by Zambia.
"In reality it is a warning shot, and a dangerous escalation for all parties," he writes. "The Greeks accuse the IMF of colluding in an EMU-imposed austerity regime that breaches the Fund's own rules and is in open contradiction with five years of analysis by its own excellent research department and chief economist, Olivier Blanchard."
He says the IMF is acting as an "imperialist lackey", which is a strange criticism because that's always what the IMF has been. But he makes a great point in saying the IMF went off the rails when it went to bat for the euro.
"The Fund's mission is to save countries, not currencies or banks, and it certainly should not be doing dirty work for a rich currency union that is fully capable of sorting out its own affairs, but refuses to do so for political reasons," he writes.
He doesn't make the same connection, but the ECB is sliding down the same slippery slope.
IMF Crushes Greek Deal Hopes, Says "No Progress Made", Halts Talks After Major Differences Remain
And just like that we are back to the rumor drawing board.
- IMF'S RICE SAYS NO PROGRESS MADE TOWARD DEAL WITH GREECE
- IMF HAS MAJOR DIFFERENCES WITH GREECE IN KEY AREAS: SPOKESMAN
- IMF'S TECHNICAL TEAM ON GREECE HAS LEFT BRUSSELS, RICE SAYS
The WSJ has more details:
The International Monetary Fund has halted bailout talks with Greece after a failure to make progress in negotiations, the IMF’s top spokesman said Thursday.
“There are major differences between us in most key areas,” said IMF spokesman Gerry Rice.
“There has been no progress in narrowing these differences recently. Thus, we are well away from an agreement,” he said.
Mr. Rice said the IMF team negotiating with Greece has been pulled out of Brussels, where talks had been occurring.
“The ball is very much in Greece’s court right now,” he said.
But "two Bloomberg sources" said yesterday a deal was almost assured. What gives?
Perhaps the fact that just as we said, this is a tried and true pattern of drawing the sheep in just so the big boys can dump to novices, Chinese grandmothers and of course, Virtu's vacuum tubes.
Considering it almost 24 hours for the official denial of the latest report we can conclude that i) the "two sources" made a lot of money trading based on their own leak and ii) since it took so long to reject the rumor, there was a lot of selling.
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This explains why Yanis Varoufakis was so confident that the payment would be made and also why the language around the payment confirmation was so bizarre (recall that the heading was "Greece said to have given order for IMF repayment"). It also underscores the degree to which this entire ordeal has now careened into sheer absurdity because disbursing bailout funds that you know will immediately be sent right back where they came from in the form of an interest payment is one thing, but literally paying yourself is another, and the IMF seems to have done the latter on Monday.
Given this, it’s certainly not surprising that Christine Lagarde and company are not thrilled about the prospect of participating further in what has become an outright farce and as El Mundo reports, the fund has now told the ECB and the European Commission that it does not wish to be a part of a new program for Greece.read more