Wednesday, April 1, 2015

1/4/15: Greek Crisis: Gaining Rhetorical Speed


So Greece is on- off- today in relation to the upcoming repayment of the IMF EUR450 million tranche due April 9. And no, it ain't April Fools Day joke.

Reuters reported as much here: http://mobile.reuters.com/article/idUSB4N0VR02320150401?irpc=932 and a more detailed report is here: http://www.spiegel.de/wirtschaft/soziales/griechenland-will-sich-nicht-an-iwf-zahlungsfrist-halten-a-1026697.html. Subsequently, the claim (made on the record) was denied: http://www.telegraph.co.uk/finance/economics/11509302/Greece-threatens-international-default-without-fresh-bail-out-cash.html

What happens if Greece does go into the arrears via-a-vis the IMF? Here is the IMF position paper on what happens in these cases: http://www.imf.org/external/np/tre/ofo/2001/eng/090501.pdf
And here are the Measures for Prevention/Deterrence of Overdue Financial Obligations to the Fund—Strengthened Timetable of Procedures as tabulated in the above report:



Which means that, in the nutshell, little beyond bureaucratic notifying and meetings takes place within the first 3 months of the breach. Nothing in terms of IMF penalties, that is. The markets, of course, will be a different matter altogether.

Meanwhile, Greece is rolling back on some past 'reforms':


And is planning on asking for more money soon:

This is some sort of a Chicken Game head-on road competition, while dumping petrol on the way... for speed...
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