Greece's latest attempt to reach deal with creditors collapses

Tighten ur seat belts, disturbance ahead. but no reason to panic
till thursday.
Exit from eurozone a step closer as EU officials dismiss Alexis Tsipras’s reforms as incomplete, with talks halted after less than an hour

Last-ditch talks aimed at breaking the impasse between Athens and its international creditors have collapsed in acrimony with European Union officials dismissing Greece’s latest reform package as incomplete in a step that pushes the country closer to leaving the eurozone.

What had been billed as a last attempt to close the gap between Alexis Tsipras’s anti-austerity government and the bodies keeping debt-stricken Greece afloat was halted late on Sunday after less than an hour of negotiations in Brussels.

"There is a significant gap between the plans of the Greek authorities and requirements of the commission, ECB and IMF
European commission statement"
In a tersely worded statement, the European commission declared talks would resume when euro area finance ministers gather in Luxembourg on Thursday. The meeting could be decisive in determining the fate of a nation that is dependent on bailout funds from the EU and International Monetary Fund to avert default.

“While some progress was made, the talks did not succeed as there remains a significant gap between the plans of the Greek authorities and the joint requirements of the commission, European Central Bank and IMF,” the statement said. In fiscal terms, the differences amounted to €2bn (£1.45bn) a year in permanent budget savings.
#Greece #EU #economy
http://www.theguardian.com/business/2015/jun/14/greeces-latest-attempt-to-reach-deal-with-creditors-collapses?CMP=Share_AndroidApp_WhatsApp

Here's the brutal reality for ordinary Greeks if the government defaults

People of Greece probably voted for a government that sold them mere dreams.
Despite repeated assurances from the Greek government that it's nearing a bailout deal, cash is running extremely low, and every day without one increases the chance that the government defaults on its debt repayments.

But what happens to ordinary Greeks in that situation?

Currently, the European Central Bank (ECB) has the Greek banking sector on life support in the form of Emergency Liquidity Assistance (ELA). That's meant to be a short-term method to prevent a crisis of liquidity (as the name suggests).

It's not a long-term prop for the system, and the ECB may not continue providing the funds if the country becomes even more obviously insolvent.

Gilles Moec from Bank of America explained this in a recent note:

By controlling Greek banks' access to liquidity via ELA, the ECB is in a crucial position. Were the central bank to "turn the tap off", then mechanically the Greek banking sector would go bust, since resident credit institutions could no longer deal with the deposit outflows.
#Greece
http://www.businessinsider.in/heres-the-brutal-reality-for-ordinary-greeks-if-the-government-defaults/articleshow/47346201.cms?utm_source=twittershare&utm_campaign=bimobile&utm_medium=referral

Greek PM hints he'll quit if people back bailout offer

If Greece disembarks from EU boat, it may become crisis for d boat.
Alexis Tsipras could quit as Greek prime minister if the country votes for a bailout proposal he rejected.
European leaders made clear they could yet save Greece from economic chaos, but there would need to be a political earthquake in Athens first.

A resignation by Tsipras could be such a big event. On Monday night in Athens, Tsipras dropped heavy hints that he may indeed quit if the referendum he called for July 5 goes against him.
"If the Greek people want to move ahead with austerity ... for young people to move abroad in their thousands, for us to have unemployment and for us again to be moving towards new programs, new loans... if that is their choice we will respect it, but we will not carry it out," he said in an interview with Greek TV.
"I am telling you that I cannot be a prime minister under all circumstances."
Greek banks were shuttered Monday in a desperate bid to prevent financial collapse. And European leaders stuck to their position that Greece was on its own, at least for now.
They're furious that Greece walked out of talks Friday. Tsipras announced a few hours later that he would urge Greece to vote against the proposal they were still discussing.
http://money.cnn.com/2015/06/29/news/economy/greece-crisis-solution/index.html

18 key facts about Greece -

I feel rules will be rewritten if Greece says "no". A big change will sweep thru
the whole global economic system.
Greece is heading toward a major vote Sunday that will both shape the future of its economy and Europe's monetary union. It is a complicated story, and here at Wonkblog, we've tried to give you a clear sense of what's going on and what's next.

But Anil Kashyap of the University of Chicago Booth School of Business has released an excellent primer  of his own that's worth a read. Kashyap wrote the piece last weekend, before Greece officially defaulted June 29 on a key payment to the International Monetary Fund, and the situation continues to evolve into the weekend. In an e-mail, Kashyap notes a few other important developments since his primer came out, including that some Greek officials have pledged to resign if Greeks vote Yes on the referendum; that creditors won't negotiate anymore until after the vote; and that a new IMF debt analysis sheds additional light on the grave situation facing Greece.

Read over the primer's 18 questions and answers--reprinted here--and come away far more knowledgeable about Greece's crisis. (We have lightly edited a few points, marked with *, to reflect updates since the original version was published.
#GreekDebt #GreekCrisis #IMF #EU #ECB #Troika
http://www.washingtonpost.com/blogs/wonkblog/wp/2015/07/03/18-key-facts-about-greece-that-will-leave-you-totally-up-to-date-about-a-huge-crisis/

A stark reality: Greeks awake to shuttered banks on day after voters reject further austerity measures

Valuation of Euro will dip if no solution emerges till 20th of july. The pound
too will feel heat, $ will strengthen. Oil will keep falling.

ATHENS, Greece –  Greeks awoke Monday to the stark reality of the country's accelerating crisis — shuttered banks and ATMs with little cash — hours after they voted resoundingly to reject more austerity measures in exchange for another bailout.

The results — 61 percent voted "no," compared with 39 percent for "yes" — left the bankrupt country's future in the European Union and its euro currency uncertain.

Thousands of jubilant government supporters celebrated in Syntagma Square in front of Parliament, waving Greek flags and chanting "No, no, no!"

The margin of victory for "no" was far wider than expected. But as celebrations died down early Monday, Greece entered a second week of severe restrictions on financial transactions and faced the prospect of even limited amounts of cash drying out, with no prospect of an immediate infusion. Greece imposed the restrictions to stem a bank run after the vote was called and its bailout program expired.

A meeting between Greek Prime Minister Alexis Tsipras and the leaders of six of the seven parties represented in Parliament began at 10:30 am local time at the presidential palace.

Tsipras requested Monday's meeting shortly after the austerity referendum results showed a clear victory for the "no" camp. He said he aimed to share his strategy for negotiations with creditors on a new bailout deal and call for support.

Asian markets mostly fell Monday, as economists said the markets were not expecting such a decisive "no" vote and that could send stocks downward.
#Greekcrisis #EU #Euro #Pound #Dollar #oilprice

http://www.foxnews.com/world/2015/07/06/greece-enters-uncharted-territory-after-referendum-no-vote/

Greece Defaults on IMF Loan Despite New Push for Bailout Aid

Clash between modern idea of justice, liberty & equality, and
medieval moneylender norms: pay on time even if u r hungry & suffering,
or else u are a lesser human.
Greece became the first developed country to default on the International Monetary Fund, as the rescue program that has sustained it for five years expired and its creditors rejected a last-ditch effort to buy more time.
#Greece #IMF #EU #tToika #GreekTragedy
http://www.wsj.com/articles/some-greek-banks-to-open-for-pensioners-1435653433

Greece’s Debt Crisis Explained

For anyone who does not want to be reduced to a Greece- like
situation, these are learning times. Be disciplined in money matters,
tighten your belts
Greece and its European creditors announced an agreement in Brussels on Monday that aims to resolve the country’s debt crisis and keep it in the eurozone, but that will require further budgetary belt-tightening that Prime Minister Alexis Tsipras could have trouble selling back in Athens.

The International Monetary Fund threatened to withdraw support for Greece’s bailout on Tuesday unless European leaders agree to substantial debt relief.

The Greek Parliament has scheduled a vote for Wednesday night on whether to approve central elements of the deal.
http://www.nytimes.com/interactive/2015/business/international/greece-debt-crisis-euro.html?_r=1