Greece's politicians on Monday lurched towards a ninth day of talks to try and form a government that could handle the country's acute financial crisis, stave off default and ensure Greece stays in the euro.
Those looking for a bit of humor in the European debacle can find it in statements from Jean-Claude Juncker, head of the eurozone finance ministers.
Juncker says "I don’t envisage, not even for one second, Greece leaving the euro area. This is nonsense. This is propaganda. We have to respect Greek democracy."
Bear in mind this statement comes from the same man who said "When it becomes serious, you have to lie."
As expected, no progress was made between Greek FinMin Yanis Varoufakis and EU finance ministers at Thursday’s Eurogroup meeting in Luxembourg. Varoufakis warned his counterparts that Europe was very close to “accepting” a Greek “accident”, something the FinMin said EU officials have a “moral duty” to avoid before “uncontrollable events” occur. Varoufakis also implicitly accused the troika of attempting to incite a bank run.
Any editor, analyst or commentator who claims that a “Greek bailout deal has been reached” is lying. Greece has NOT reached a bailout deal in any way shape or form. What DID happen was Greece’s Prime Minister agreed to try and push a new austerity program through Greece’s parliament. IF he can do this, and IF the Greek government agrees to the austerity program then NEGOTIATIONS (not a deal) can begin as to whether or not Greece should receive another bailout.
ATHENS — Greek bank stocks fell by more than 22% on Wednesday as the Athens market suffered a third day of turmoil following the election of a government led by leftist anti-austerity Prime Minister Alexis Tsipras.
Fears that Greek banks, facing increased deposit outflows, could be shut out of European Central Bank liquidity assistance if their assets were no longer accepted as collateral led to a rout as investors dumped financial stocks. Bank shares have fallen by a total of 40% since Sunday’s vote.
Whether or not Greece stays in the Eurozone and for how long is still debatable, but Greek CDS contracts are set to trigger next month after Greek parliament retroactively inserts collective action clauses (CACs) forcing all debt-holders to participate in the next deal.
Bear in mind that forced restructuring is the trigger, not the insertion of the CAC language itself.
The Financial Times reports Greece sets date for €200bn debt swap
ATHENS, Greece — Greece slipped deeper into its financial abyss after the bailout program it has relied on for five years expired at midnight Tuesday and the country failed to repay a loan due to the International Monetary Fund.
With its failure to repay the roughly 1.6 billion euros (US$1.8 billion) to the IMF, Greece became the first developed country to fall into arrears on payments to the fund. The last country to do so was Zimbabwe in 2001.