As reported yesterday, Greece has stormed right back to the top of the crisis charts, not only due to the previously reported news that the IMF may be withholding further payments until Greece finally gets its house in order (three years later one can forget this will happen), but because as a result of the fallout surrounding the national broadcaster ERT, the coalition government is now in tatters.
JERUSALEM – A badly weakened Prime Minister Benjamin Netanyahu scrambled Wednesday to keep his job by extending his hand to a new centrist party that advocates a more earnest push on peacemaking with the Palestinians after Israel’s parliamentary election produced a stunning deadlock.
Things for Europe (and liquidity addicts around the globe) just got a little more complicated. Earlier today, moments after the failed Greek presidential vote pulled the forgotten topic of a Grexit up front and center, the IMF announced that it is suspending financial aid to Greece under its huge rescue program until a new government is formed. RTE quotes IMF spokesperson Gerry Rice who said discussion on the completion of the sixth review of Greece's bailout will resume once a new government is in place.
According to the Greek website Kathimerini, Troika talks break down.
A second meeting between troika officials in Athens and Greece's Labor Minister Yiannis Vroutsis broke down on Tuesday, after the two sides hit a deadlock for the second time in the same day.
Greek default drama is much like the movie Groundhog Day. If you prefer a quote from Yogi Berra instead, then please consider It's déjà vu all over again.
Every day for weeks we have heard a "deal is close". Moreover, on multiple occasions at the end of the week we were informed Greece "had" to reach agreement over the weekend or Greece would default. Let's hope this time someone really means it.