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

Recap: How Markets Reacted to the Turmoil in Greece

Outcome will weaken euro valuation; export windfall likely for Germany.
Markets around the world reacted strongly Monday to the latest twists and turns in the drama playing out in Greece. Stocks tumbled from Hong Kong to London, gold and U.S. Treasurys strengthened as investors looked for safety, and the euro actually rose.

The gyrations came amid news that Greek banks will stay closed for six days, and the country’s central bank has moved to impose capital controls, in a bid to prevent a severely battered banking system from collapsing completely.

Over the weekend, Greek Prime Minister Alexis Tsipras shocked European policy makers by announcing the country will hold a referendum on whether to accept the terms of Greece’s creditors to unlock desperately needed financial aid.

It now looks almost inevitable that Greece will default on a €1.54 billion ($1.69 billion) payment due to the International Monetary Fund on Tuesday. Much is at stake beyond the IMF’s balance sheet. What happens to Greece itself? What happens to the euro, a purportedly unbreakable currency union, and the Continent’s attempt to recreate itself as a global economic superpower? What happens in the capital markets, which have feasted on cheap debt and assumed all risks were contained?
http://blogs.wsj.com/moneybeat/2015/06/29/greece-markets-react-live/

Euro sinks to 12-year low in value against the dollar

Outcome will weaken euro valuation; export windfall likely for Germany.
ECB’s quantitative easing programme and deepening of Greek crisis among the factors sending the euro down and boosting prospects for eurozone exporters
A fresh plunge in the value of the euro against the dollar was shrugged off by the European Central Bank (ECB) on Wednesday as it said its new growth-boosting policy would work without triggering a global currency war.

With the euro on course to dive below parity against the dollar within the next few weeks, one of the ECB’s senior policymakers denied that Frankfurt was deliberately driving the single currency lower in an attempt to secure a competitive advantage.

Ewald Nowotny, the head of Austria’s central bank and a member of the ECB’s governing council, said the ECB did not target the exchange rate. “The ECB, as a central bank, does not have the exchange rate as a policy. It is a side effect of other things.”

He added: “Exchange rates are not a major dominant factor for the global economy. I think it would be wrong right now to assume that what’s going on is a currency war.”
http://www.theguardian.com/business/2015/mar/11/euro-12-year-low-gainst-the-dollar?CMP=Share_AndroidApp_WhatsApp

Greek leader flip-flops on bailout again

Tsipras trying to prove to his people he meant what he promised during election,
also trying to tell world he's reasonable guy.
The Greek crisis...in 2 minutes
The remarkable series of events bring Greece no closer to fixing a crisis that spells disaster for its economy and people.
Tsipras wrote to European leaders and the International Monetary Fund late Tuesday, accepting most of the conditions they had attached to releasing more cash.
"[Greece] is prepared to accept this staff level agreement subject to the following amendments, additions or clarifications," Tsipras wrote, according to a copy of the letter obtained by CNN.
The first change he listed -- and the most significant -- is for Greece to continue levying a lower rate of sales tax on its many islands. Creditors wanted the discount eliminated.
Otherwise, the changes mainly concern slight delays to pension reforms and tax increases that the creditors had demanded.

http://money.cnn.com/2015/07/01/news/economy/greece-bailout-concessions/index.html

Greece will go ahead with referendum, is not an up/down vote on euro

Question is, is the decision to go for referendum a strategy backed by
international friends, or is he on his own?
If there is no strategy and backing , and it was rhetoric, then OMG!
We'll keep you updated on all the developments from Greece, as a newly published letter shows that the Greek government is willing to concede ground in discussions with its creditors.

European finance minsters are also set to reconvene to discuss new proposals put forward by the embattled euro zone nation, after it defaulted on its debt on Tuesday.
https://www.blogger.com/blogger.g?blogID=3628030342354054046#editor/src=sidebar

Greek Debt Crisis Risks NATO Withdrawal, New Refugee Surge

IMF & European institutions are equally responsible for this crisis. they 
should work for stability & grouth. they appear to be working as moneylenders,
not organizations. they are causing volatility & risking global economy. 
they are unmaking their role. 
A failure to resolve the Greek debt crisis could do more than weaken the euro and cause stocks to retreat.
It has the potential to prompt a Greek withdrawal from NATO, increase the influx of refugees into Europe and threaten Greek support for international sanctions against Russia over Ukraine.
“Greece spiraling into chaos would be a significant strategic disruption for Europe and therefore for the U.S.,” retired U.S. Admiral James Stavridis, a former NATO supreme allied commander, said in an interview. “There’s more to this crisis than money and the financial markets.”
Such outcomes are possible, though unlikely, should European leaders prove unable to resolve the debt dispute that has shut Greek banks and frightened investors. Greece asked for a new bailout program from the euro region on Tuesday after saying it will miss a midnight deadline for a debt payment to the International Monetary Fund.
If Greece ultimately is pushed off the euro currency for defaulting on its debt, it could seek revenge by pulling out of the North Atlantic Treaty Organization, blocking European Union sanctions on Russia or forcing the U.S. from its naval base in Crete, said Stavridis, a Greek-American who is dean of the Fletcher School of Law and Diplomacy at Tufts University in Massachusetts.
http://www.bloomberg.com/news/articles/2015-06-30/greek-debt-crisis-risks-nato-withdrawal-new-surge-of-refugees

Where did the Greek bailout money go?

If Greece, with about $130 bn expenditure, $120 bn revenues, $3 bn
monthly exports & $4.5 bn monthly imports, chooses to introduce a local
currency.
With help in imports from friends, cheaper currency, booming tourism, no
hostile borders, & much more, & Troika left holding majority of its debt.
what if greece leaves Eurozone
Only a small fraction of the €240bn (£170bn) total bailout money Greece received in 2010 and 2012 found its way into the government’s coffers to soften the blow of the 2008 financial crash and fund reform programmes.
Most of the money went to the banks that lent Greece funds before the crash.
Unlike most of Europe, which ran up large budget deficits to protect pensioners and welfare recipients, Athens was then forced to dramatically reduce its deficit by squeezing pensions and cutting the minimum wage.
The troika of lenders first stepped in during the spring of 2010 after Athens could no longer afford to finance €310bn borrowed from a wide range of majorEuropean banks.
Live Greek debt crisis: Tsipras meets mutinous MPs as bailout vote looms - live
Greece’s prime minister faces rebellion after capitulating over the swingeing austerity measures forced on Athens by its eurozone partners
   Read more
Two years later, the International Monetary Fund (IMF), European commission and European Central Bank (ECB) came up with a second bailout that centred on a €100bn debt write-off by private sector lenders.

http://www.theguardian.com/world/2015/jun/29/where-did-the-greek-bailout-money-go?CMP=share_btn_tw