So, anyone paying attention knows Greece is in a horrible financial position, and they are entirely dependent upon the largess of it’s creditors. Indeed, the cost for Greece to issue bonds just went up a huge amount, because of their stupidity.
LONDON (AP) — Mounting fears of a Greek debt default sent the country’s borrowing costs surging Thursday and prompted one prominent U.K. bookmaker to stop taking bets on the possibility of Greece leaving the euro.
The jitters were triggered initially by a report in the Financial Times that the Greek government recently made an “informal approach” to the International Monetary Fund to have bailout repayments delayed.
Unease was also stoked by evidence that the Greek government is shuffling around resources to cover costs and by pessimistic comments over the prospect of a deal between Athens and its European creditors.
Perhaps the most dramatic sign that Greece’s crisis is coming to a head was the FT report that the IMF persuaded Athens not to make a formal request to delay repayments to the Washington D.C.-based institution next month. Greece is due to pay the IMF around 1 billion euros ($1.06 billion) in two installments.
For investors, the report, which cited unnamed officials on both sides, was unsettling as it signaled that the Greek government is still a long way from convincing its European creditors about an economic reform plan that is needed to unlock the remaining funds in the country’s bailout. Since 2010, Greece has relied on a 240 billion-euro bailout from its euro partners and the IMF.
In Washington, IMF Managing Director Christine Lagarde rejected the possibility that the IMF would grant Greece a delay in making the payments. She said no advanced economy had ever made such a request to the IMF.
Lagarde told reporters at a news conference that her hope was that the Greek government will be able to implement the reforms needed to make the Greek economy “more stable and to create jobs.”
Failure to agree on a plan with creditors would cause Greece to default, a development that could force the government to put limits on money transfers and even lead the country to leave the euro.
“What is concerning is how quickly these ‘informal’ talks could turn into serious delays and missed payments as Greece rapidly runs out of money,” said Connor Campbell, financial analyst at London-based spread betting firm Spreadex.
Investors are wary and the yield — a gauge of investor risk — on Greece’s 10-year bonds surged a whole percentage point Thursday to just below 13 percent. The 3-year yield jumped to a staggering 28 percent. …..
…..In February, the Greek government, elected on a promise to end crippling austerity measures, was asked to come up with a series of economic reforms if it wanted the next 7.2 billion euros in bailout money. The creditors have so far found Greece’s proposed reforms insufficient. ……
…….”No one is interested in backing Greece to stay in the eurozone until the end of the year, so we decided to pull the plug on the markets until either the decision to leave is taken or the crisis point passes and a plan is put in place enabling the country to remain in,” said William Hill spokesman Graham Sharpe.
Even if a deal emerges, Greece will still likely require further financial assistance beyond the summer, possibly involving a third bailout.
Figures released Thursday showed Greece’s financial situation remains parlous. Though the budget deficit in the first quarter was lower than expected — at 500 million euros against a target of 2.1 billion euros — the government has apparently been forced to take stop-gap measures.
The finance ministry said more than 600 million euros in payments for state procurements due in March will be carried over into coming months and that regular payment would be restored once the government’s cash situation is “normalized.”
Other stop-gaps have included regular short-term debt issues and the voluntary transfer of cash reserves of state companies to the country’s central bank.
Deputy Finance Minister Dimitris Mardas did not rule out using a law that would force state entities to transfer their cash reserves to the central bank. He also said the ministry is working on cutting “wasteful” state spending, but without touching state salaries and pensions.
Now, this has been a great money maker. But, right now, it’s a good time to not buy Greek bonds. Prior to the most recent Greek government, it was a no-brainer. But, you never know with the current round of lunatics.
Still, it’s easily seen that Greece is in serious trouble. They don’t really produce much, or things with much value, there aren’t many jobs, so there’s not many tax payers. Things are bad all over!
So what’s happening in Greece, right now?
ATHENS, Greece (AP) — About 4,000 workers at a northern Greek gold mine and their supporters are demonstrating in Athens, in the most significant labor challenge the new radical left-led government has faced since its election in January.
Protesters fear job losses because the governing Syriza party has fought the privately-owned mine on environmental and financial grounds. Authorities have temporarily revoked a permit for a key ore enrichment plant at the Skouries mine, and accuse the mining company of encouraging the protests.
Police closed major roads as miners marched to the Development Ministry Thursday, where they shouted slogans and banged their hard hats on the ground. The protesters were later planning to march to Parliament, while a counter-protest by leftists and anarchists who oppose the gold mine was planned for later in the day.
Leftards are the stupidest thing on the face of the earth.