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IMF: austerity measures would still leave Greece with unsustainable debt

IMF: austerity measures would still leave Greece with unsustainable debt

Greece would face an unsustainable level of debt by 2030 even if it signs up to the full package of tax and spending reforms demanded of it, according to unpublished documents compiled by its three main creditors.

The documents, drawn up by the so-called troika of lenders, support Greece’s argument that it needs substantial debt relief for a lasting economic recovery. They show that, even after 15 years of sustained strong growth, the country would face a level of debt that the International Monetary Fund deems unsustainable.

Greece has no chance of meeting the target of reducing its debt to “well below 110% of GDP by 2022” set by the Eurogroup of finance ministers in November 2012.

Greek debt repayments til 2057

Henry Kissinger 1974

The Greek people are anarchic and difficult to tame. For this reason we must strike deep into their cultural roots: perhaps then we can force them to conform. I mean, of course, to strike at their language, their religion, their cultural and historical reserves, so that we can neutralize their ability to develop, to distinguish themselves, or to prevail; thereby removing them as an obstacle to our strategically vital plans in the Balkans, the Mediterranean, and the Middle East.

WE’RE ALL IN IT TOGETHER?

Greece debt crisis: IMF payment missed as bailout expires

Greece debt crisis: IMF payment missed as bailout expires

Greece has missed the deadline for a €1.5bn (£1.1bn) payment to the International Monetary Fund (IMF), hours after eurozone ministers refused to extend its bailout.

But the ministers say they will discuss a last-minute request from Greece for a new two-year bailout on Wednesday.

Greece is the first advanced country to fail to repay a loan to the IMF and is now formally in arrears.

There are fears that this could put Greece at risk of leaving the euro.

The IMF confirmed that Greece had failed to make the payment, shortly after 22:00 GMT on Tuesday.

“We have informed our Executive Board that Greece is now in arrears and can only receive IMF financing once the arrears are cleared,” said IMF spokesman Gerry Rice.

More  http://www.bbc.co.uk/news/world-europe-33339363

Greece closes banks, imposes capital controls

Greece closes banks, imposes capital controls

The Greek government has announced that banks will remain closed on Monday and restrictions on withdrawals will be introduced following the ECB refusal to provide additional Emergency Liquidity Assistance to Greece’s banking system.

“The Eurogroup’s decision prompted the ECB to not increase liquidity to Greek banks and forced the Bank of Greece to recommend that banks remain closed, as well as restrictive measures on withdrawals,” Greek Prime Minister Alexis Tsipras told the nation in his Sunday night address.

Read more  http://rt.com/business/270304-greece-capital-controls-banks/

GREEK REFERENDUM TO BE HELD ON JULY 5

GREEK REFERENDUM TO BE HELD ON JULY 5

(Faster than Cameron can say ‘In out’)

Greece Rejects Bailout Extension: Tsipras “Won’t Be Blackmailed”, Threatens Snap Elections

Tsipras To Announce Referendumtext of announcement to the Greek people

It appears as though Tsipras is set to turn the tables by threatening to effectively put euro membership to a popular vote.

GREECE’S TSIPRAS SAYS CREDITORS POSED ULTIMATUM TO GOVT

GREECE’S TSIPRAS SAYS CREDITORS PROPOSALS ARE AGAINST EU RULES

TSIPRAS SAYS CREDITORS AIM TO HUMILIATE GREEK PEOPLE

TSIPRAS SAYS WILL CALL REFERENDUM ON GREEK DEAL WITH CREDITORS

TSIPRAS GREEK REFERENDUM WILL BE HELD ON JULY 5

TSIPRAS SAYS HE NOTIFIED MERKEL, DRAGHI ON REFERENDUM PLAN

The issue of timescale is relevant – since the referendum would take place after the repayment deadline, requiring the ‘creditors’ to agree to a bailout extension – which isn’t happening. In which case there would be no need for a referendum.

Possible game-plays:-

 For Tsipras it looks now as if the key question will rest on WHO gets blamed for a Grexident.

As we watch the drama unfold – awaiting the ‘final curtain’ on 30th June 2015 (although I suspect there will be encores), for those who want to understand HOW this all came about – the film Debtocracy may help.  “Debtocracy” seeks the causes of the debt crisis and proposes solutions, hidden by the government and the dominant media.

It’s not just about Greece – this traces the social, economic and political factors globally – with an emphasis on Europe.

 

WE ARE ALL GREECE

Greece –  Painless poverty is better than embittered wealth.

Greece – Painless poverty is better than embittered wealth.

The title is from a Greek proverb. We’ve been covering the Greek situation here since the launch of the site on May 11th, as those who have been following the news stories will know. This is a short summary – a synopsis – a ‘meze’ of  morsels to give the flavour of what is currently on the table.

Before we set out some dishes – here’s the background cloth.

Greece’s short- term ‘repayment’ schedule

http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2015/04-overflow/20150424_gre_0.jpg

http://www.zerohedge.com/news/2015-04-24/relentless-greek-debt-payment-schedule

Here’s the repayments till August 2015 http://static6.uk.businessinsider.com/image/55252ad282e985b661d8da30-808-697/hsbc%20greece.png

Unfortunately Greece couldn’t ‘stump up’ the June payments – so

The International Monetary Fund on Thursday allowed Greece to bundle its four debt payments due this month into a single payment now due on June 30.
http://www.france24.com/en/20150604-greece-eu-imf-bundle-debt-negotiations-repayment-tsipras-syriza

(How very kind of the IMF?)

But that ”concession” follows the temporary indigestion of The Bailout Farce in May. http://davidstockmanscontracorner.com/the-bailout-farce-greece-borrows-imf-funds-to-pay-imf-now-will-need-new-imf-loan-to-repay-next-month/

Greece Borrows IMF Funds To Pay IMF Now; Will Need New IMF Loan To Repay Next Month

and at that point

GREECE CASH RESERVES STOOD AT APPROXIMATELY EUR 90 MILLION – EUROSYSTEM SOURCES

(Maybe just go back and check that chart of what’s still outstanding?)

Now Greece has declared that the debt is

Illegal, Illegitimate, And Odious as we posted on here yesterday (thanks zerohedge)

http://loucollins.uk/2015/06/17/greek-debt-committee-just-declared-all-debt-to-the-troika-illegal-illegitimate-and-odious/

Then we have Lagarde (who is clueless)    http://davidstockmanscontracorner.com/christine-lagarde-is-clueless-70-words-of-pure-keynesian-claptrap/

http://photo.ekathimerini.com/kath/engs/img/NEWS/2015/06/lagarde_dijsselbloem_web.jpg

Greece will be in default if it fails to meet a €1.6 billion repayment to the International Monetary Fund due on 30 June 30, Christine Lagarde said on Thursday. There would be “no period of grace” for Greece, Lagarde told reporters.

So where are Greece going to get the euro dosh?

Russia Won’t Comment on Aid to Greece Ahead of Tsipras Visit.   http://hosted.ap.org/dynamic/stories/E/EU_RUSSIA_GREECE?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2015-06-18-05-18-36

And Russia has already invited Greece to join BRICS

http://rt.com/business/257701-greece-russia-brics-invitation/

– and BRICS is –a brave new world  where leading developing countries finally challenge the iniquitous international system.

http://rt.com/op-edge/172876-brics-economies-international-system/

(New World…………?)

Now. Take a rest between courses and ask a question.

Is it just about the money?

Why should it matter to Brussels/the Troika if Greece gets the money from Russia?

Well the secret ingredient is this:

Unless Greece agrees economic reforms (or sells off assets) with its creditors by the weekend, EU officials believe time will run out for Athens to access a much-needed €7.2bn tranche remaining in its bailout programme before it expires in two weeks.

So the Greeks get another loan – which goes to repay an earlier loan – but ONLY if they DO AS THEY’RE TOLD

Let’s not forget what hidden jewels Greece harbours

Analysis: Could oil and gas reserves save the Greek economy?

http://www.geoexpro.com/articles/2014/03/a-fresh-look-at-the-oil-and-gas-potential-of-greece

What’s the best way for 3rd parties to get hold of those assets cheaply I wonder?

Well – a bank run always helps?

Game Over For Greek Banks: Depositors Yank €2 Billion In Past Three Days

ECB TOLD EURO ZONE FINANCE MINISTERS IT WAS NOT SURE IF GREEK BANKS WOULD BE ABLE TO OPEN ON MONDAY- OFFICIALS

followed by an official denial:                   EU OFFICIAL: ECB DIDN’T SAY GREEK BANKS MAY NOT OPEN MONDAY

then undermine Tsipras and scaremonger

Stournaras approved a coruscating statement released by the BoG condemning Tsipras and asserting (rather than hypothesising) doom for Greece unless it agreed to the latest Troika demands.   Stournaras also sits on the IMF Board

Threats that Greece will be forced out of the EU and spiral into economic collapse without a rescue deal are crude intimidation

The central bank did not present these as potential dangers in a worst case scenario – something we might all accept – it asserted that they would occur unless Mr Tsipras agrees to terms imposed by Brussels before the Greek treasury runs out of money.

Never before has such a “monetary policy” report been published by the central bank of a developed country, or indeed any country. It is a political assault on its own elected government.

http://www.zerohedge.com/sites/default/files/images/user92183/imageroot/2015/06/UnFuck2_0.jpg

WE ARE ALL GREECE

Greek Debt Committee Just Declared All Debt To The Troika “Illegal, Illegitimate, And Odious”

Greek Debt Committee Just Declared All Debt To The Troika “Illegal, Illegitimate, And Odious”

Moments ago, this committee released its preliminary findings, and here is the conclusion from the full report presented below:

All the evidence we present in this report shows that Greece not only does not have the ability to pay this debt, but also should not pay this debt first and foremost because the debt emerging from the Troika’s arrangements is a direct infringement on the fundamental human rights of the residents of Greece. Hence, we came to the conclusion that Greece should not pay this debt because it is illegal, illegitimate, and odious.

If so, this has just thrown a very unique wrench in the spokes of not only the Greek debt negotiations, but all other peripheral European nations’ Greek negotiations, who will promptly demand that their debt be, likewise, declared odious, and made null and void, thus washing their hands of servicing it again.

And another question: when Greece says the debt was illegal and it no longer has to make the June 30 payment, what will be the Troika’s response: confiscate Greek assets a la Argentina, declare involutnary default, sue it in the Hague?

Good luck.

People’s dignity is worth more than illegal, illegitimate, odious and unsustainable debt

Having concluded a preliminary investigation, the Committee considers that Greece has been and still is the victim of an attack premeditated and organized by the International Monetary Fund, the European Central Bank, and the European Commission. This violent, illegal, and immoral mission aimed exclusively at shifting private debt onto the public sector.
Making this preliminary report available to the Greek authorities and the Greek people, the Committee considers to have fulfilled the first part of its mission as defined in the decision of the President of Parliament of 4 April 2015. The Committee hopes that the report will be a useful tool for those who want to exit the destructive logic of austerity and stand up for what is endangered today: human rights, democracy, peoples’ dignity, and the future of generations to come.

http://www.zerohedge.com/news/2015-06-17/greek-debt-committee-just-declared-all-debt-illegal-illegitimate-and-odious

Greece’s economy will be locked down with capital controls if it can’t find a deal by the weekend

Greece’s economy will be locked down with capital controls if it can’t find a deal by the weekend

A report in Germany’s Sueddeutsche Zeitung newspaper on Monday evening says European governments are ready to push for capital controls in Greece if there’s no deal this week.

Other European countries can’t make that move on their own — there’s no institutional procedure for the rest of Europe locking down an individual member state. Greece would have to pass its own law agreeing to the move.

http://uk.businessinsider.com/report-greeces-economy-will-be-locked-down-with-capital-controls-if-it-cant-find-a-deal-by-the-weekend-2015-6

and

We’re All Greek Now — Some Just Don’t Know It Yet

Let’s see…a heavily-indebted country can’t pay its bills, engages in a long series of failed attempts to manage a partial, controlled default, sees most of its capital flee to safer venues, and then, in a final act of desperation, imposes capital controls.

But it quickly realizes that it’s too late. Capital controls, to the extent that they ever work, have to be imposed by surprise, while there’s still some capital to control. If you wait until everyone expects them, the banks empty out in anticipation and you’ve locked a barn sans horses.

http://dollarcollapse.com/money-bubble/were-all-greek-now-some-just-dont-know-it/

 

EU Court of Justice opens door for lawsuits against Greece

EU Court of Justice opens door for lawsuits against Greece

Hundreds of lawsuits by Greek government bondholders in Germany had been on hold since 2013 pending the ruling. The bondholders argue that Greece in 2012 forced them to swap their securities with new government bonds of a significantly lower nominal value. While none of the claimants accepted Greece’s initial offer, the government carried out the proposed exchange.

The EU court’s decision comes days before it is due to rule on another German case with the potential to send shock waves across the euro area. Judges are scheduled to deliver a verdict on whether ECB president Mario Draghi overstepped the mark with a 2012 bond-buying plan he designed to help save the euro.

http://www.infowars.com/eu-court-of-justice-opens-door-for-lawsuits-against-greece/