Greece Will Default To IMF Tomorrow, Government Official Says

This-Is-Sparta

Greece Will Default To IMF Tomorrow, Government Official Says (ZeroHedge, June 29, 2015):

Earlier today, as the exchange between Greece and its creditors got increasingly belligerent, Estonian Prime Minister Taavi Roivas told public broadcaster Eesti Rahvusringhaaling in interview that a possible Greek decision to leave euro area wouldn’t soften stance of other EU countries and that Greece’s debt would still remain outstanding and creditors would expect this money back.”

“If Greece leaves, the value of their new national currency would decline very fast, so their solvency would still worsen further. They will either have to cut spending or improve their tax revenues. There are no other options.”

So did this latest antagonism change the Greek mind? According to a flash headline by the WSJ released moments ago, not all. In fact, Greece just made it official that it would default to the IMF in just over 24 hours.

More:

Greece won’t make a debt repayment to the International Monetary Fund due Tuesday, a senior Greek government official said Monday.

Earlier this month, Greece had notified the IMF it plans to bundle its loan repayments falling due this month into one payment of around 1.6 billion euros ($1.7 billion), which is due Tuesday.

The IMF has said that Greece will immediately be in arrears if it fails to make the debt repayment.

So, as per game theory, the Greek plan – at least until the social mood turns very ugly – remains just one:

300-This-Is-Sparta-Kick

The problem is what happens then…

7 thoughts on “Greece Will Default To IMF Tomorrow, Government Official Says”

  1. Won’t soften the stance of Euro nations? Has anyone been looking at the supportive marches by citizens of all Euro nations of Greece?

    Greece is correct. Borrow money and give their last few bits of cash to the IMF to be allowed to grow their debt even more? How does Greece benefit? This greedy gut choke hold only benefits the IMF (also operating on borrowed money), nobody else.

    It is going to set off a chain of events that will provide far more than a headache for the IMF. Four Euro nations hold/guarantee 98% of all Greece’s debt; Germany, France, Italy and Spain. Italy and Spain nearly collapsed in the last 24 months, France has economic problems, and Germany is struggling now as well. If these four countries are the strongest in the Euro, it is on life support as I read and write this…….Looks like the bankers have pushed too hard.

    All the Euro nations have debt to GDP in excess of 100%. Once debt exceeds 100% of income, that means all money that comes in is already owed elsewhere, leaving no chance for economic growth in the real economy. This is why the US economy continues to contract, we hit that milestone a while back.
    There is no money……..not for the real economy, only greedy guts.

    The only thing being traded in the markets and between nations is debt. Looks like the endless borrowing is being refused, for the first time. This really screws up all those underwriting and borrowing……A chain is only as strong as its weakest link…………………….

    Looks like the Greek PM is showing good sense. I agree with what he is doing, so are his people, so are many citizens of all the debt laden Euro nations. Wow. Might cause a real backlash…..And this is going to expose the financial weakness of the four so-called strongest Euro nations.

    The truth is pretty simple. During the last so-called boom years, standard business practice was to take $100 million, and leverage it into $100 Billion…..1000:1 ratio. A couple of years ago because the real economies have not grown, there is nothing left to grow them…..they started leveraging the leveraged funds. Insanity. We are talking quadrillions, there isn’t that much value in the entire world economy.

    It was obvious it could not go on forever. Anyone who believes the false statistics about growth or inflation needs to look again. Prices of vehicles, food, energy, medical care, homes……..The costs have skyrocketed, and the standard of living for millions continues to decline. This trade deal will remove another 40% of American jobs, our leaders work against the financial best interests of our own nations to serve the corporate greedy guts.

    At some point, someone had to have the guts to say Enough.
    The Greek PM is being hailed as a man of courage all over the world by those tired of greedy gut domination.
    No benefit to keeping the game going.
    Other nations will follow.

    Reply
  2. Assuming Greece does find a legal loophole stopping the exit from the euro, they still can’t/won’t repay the debt so benevolently given to them by the scheming banksters.

    So, where does that put them? A toxic Apple in a barrel of bruised apples.

    Hopefully someone knows how to turn it into scrumpy cider before it all decomposes into riots and anarchy…..or would that be a way out for all of us?

    http://www.telegraph.co.uk/finance/economics/11707250/Greek-crisis-live-IMF-defaut-day.html

    Reply
  3. Bloomberg Surveillance this morning:
    Greece tells IMF NO check.
    Pension checks cut to 120E a week, down from 240E
    David Kotok: Greece is contained, no big deal. Either he is deluded, or selling for greedy guts (that’s my guess). The turmoil & accelerated 3.9 standard deviation VIX and an investment opportunity in the Euro zone. Euro will drop to 85 cents…..
    Let Greece float away. Greece failed twice. If Greece stays in, a can kick for a later time. 50% depreciation. Debt is E10,000 for every Greek citizen.

    Drachma depreciation showing 50% depreciation.

    German taxpayers want to be paid back, don’t want their money to vanish, Merkel has a lot of pressure. Germany is the largest holder of Greek debt, it isn’t going to be pretty. Talking heads say there will be a lot of investment opportunities in Germany very cheap. In my opinion, they are not looking at the real picture.

    Germany, France, Spain and Italy are the four so-called strong Euro nations holding 98% of Greek debt. None of them can afford to lose that money, and it is gone. Loaning huge amounts of money to those who cannot repay is financial suicide…….Spain and Italy nearly collapsed less than 24 months ago. They are in no position to be loaning money to anyone, let alone Greece. What kind of warped reasoning caused this insanity?

    Political battle lines forming between Greece and their creditors, no kidding.
    Citizens are opposed to austerity…..Other countries will follow.

    Their financial weakness is now going to be exposed, the idiot promoting investment in German enterprises does not get it……There are other countries also going into default as well…..

    Puerto Rico, Greece, Argentina (also refusing to negotiate with creditors), Ukraine, are all in or heading into default. Can Puerto Rico, a US commonwealth declare bankruptcy? $72 Billion debt load; US offering no help.US isn’t intervening with Puerto Rico, regardless default looms for them;

    Puerto Rico’s biggest debts are as follows:
    Moral Hazard with banking system is growing daily: new pricing for each citizen grows daily.
    Cofina: $15B
    General obligation: $13B
    PREPA (power) $9B
    PRHTA (Highways) $6.5B
    Guaranteed Debt: $5.5B
    PRASA (Water) $4.8B

    GE is showing sense, they are dumping another huge financial branch….they see the handwriting on the wall. The banking system is beginning to crumble, too much debt triggered by excessive leveraging and greed.

    Reply
  4. Gee, Americans won’t be hurt at all says the core of credibility, Mr. Obama. Worry not, Greece will not affect our economy at all. We all know what his word means, right?
    Is he a pathological liar or just delusional?
    Idiot.

    http://rt.com/news/269026-greece-bank-debt-crisis/

    Greece is now requesting E30B, nearly 3X what the greedy gut IMF would give them….one reason talks broke down….
    Good luck, Greece.

    Reply
  5. Devil is in the details, I think the UK Guardian likes dramatic headlines, like any newspaper……
    Greece wants another E30Million……no wonder they don’t want to include the IMF in their offer, the IMF would not give them half that amount……..
    Why anyone would add another E30Million to a debt load Greece can never pay now is beyond me…..
    Here is the link:
    http://www.theguardian.com/business/live/2015/jun/30/greek-debt-crisis-day-of-decision-for-tsipras#block-55929b27e4b07d838e3d2af0

    Reply

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