“If no solution is found with the partners, we will have an imminent liquidity problem,” deputy Prime Minister Yiannis Dragasakis told private Alpha TV on Thursday. “Since last August we have not received any bailout tranche, and so far both the previous government and we have paid our obligations to partners,” he stressed adding that “we have an economy that takes money in order to pay loans and this causes suffocation.”
With liquidity drained and unable to find money in international markets, Greece needs to pay an obligation of total 2 billion euro by end of March.
€350 million to IMF
€1.6 billion in short-term bonds
€110 million in interest on four bonds held by the ECB. (via Bloomberg)
In addition, Greece has to find something like one billion euro to pay salaries and pensions.
Yesterday, Wednesday, Greece sold T-bills worth €1.6 billion in order to meet its upcoming obligations.
“In case of emergency, there is €3 billion available through the Emergency Liquidity Assistance,” note Proto Thema.
Greece can raise money through issuing T-bills, but the EU-partners put obstacles in lifting the cap.
At the same time, due to the economic instability fueled by Grexit and Grexident threats from the side of the “partners”, deposits continue to fly from the banks in unknown direction.
“More than €350m reportedly left the country’s stricken banks on Wednesday alone, prompting the European Central Bank to incrementally raise its ceiling on emergency funding.
The ECB reportedly raised the cap on ELA funding by just €400m, falling short of Greek government demands for a near €2bn hike.” (Telegraph)
Yields on three-year bonds rose 11 basis points to 20.29 percent and on ten-year bonds were at 11.09 percent Thursday morning.
Greece’s obligations towards the lenders total €6.5 billion until June 2015. In a document submitted by the Organization for Public Debt (ODDHX) to the Parliament, the payments are:
March €2.2 billion
April € 0.82 billion
May € 1.03 billion
June € 2.5 billion
At the same time, almost €3.5 billion per month are needed for the payment of salaries and pensions and other expenses.
The government has to ensure increased revenues from tax collection and arrears settlement – this is the bill that the lenders -the ex Troika – oppose!
According to Greek media, another solution is to exhauste the liquidity of government agencies utilizing their available cash in the banks.
I hope the fire brigade in Brussels will not go swimming today
Sure.
Greek banks are soaking up Greek government T-bills (i.e. junk) and the ECB is filling the even wider gaping holes in their balances with unlimited ELA.
In other words: Greek demands general power of attorney on the ECB account.
Something else? Direct access to creditor nations savings accounts?
Btw: which finger did Putin show you? – Or do you have (after Oil and Reparations) a third ace up your sleeves?
Get real, before it’s too late.
You have absolutely no idea what a default would mean for the weakest of your society and should you think you know about austerity, you ain’t seen nothing yet.
Credit default swaps are meanwhile pricing in a Greek default probability of over 80%.
By the way: in a world that has too much money circulating around looking for investment, I would start thinking, when no private creditor would give me a single cent under 20%.
I first became aware of Mr. Dragasakis in June of 2011 when I read an interview of his. My conclusion then was, to use Margaret Thatcher’s term, that Mr. Dragasakis is a man one can do business with. Down to earth; more like the Godfather than the hotblooded Sonny Corleone; competent. I really haven’t heard much about or from him since then.
This article confirms the impression which I had of Mr. Dragasakis then. Greece won’t get a deal with the EU if it threatens them. If Greece (or Mr. Dragasakis) makes the EU an ‘offer which they can’t refuse’, it will be an entirely different matter.
http://klauskastner.blogspot.co.at/2012/06/mr-yannis-dragasakis-syriza-is-right.html
for same reasons I thought Dragasakis statement is important and needs to be posted.