Can you imagine? It is Holy Thursday, you wake up and instead start dying Easter eggs and kneading dough for Easter sweet bread, you run to the bank and write a 450-million-euro check in order to avoid default. “Greece’s payment to International Monetary Fund is scheduled for today,” media reported Thursday morning, by noon the news is that Greece did made the payment.
The payment is one installment of the bailout loan Greece received in 2010.
Last Sunday Greek Finance minister Yanis Varoufakis assured Christine Lagarde that Greece will meet all its obligations to creditors.
It is not clear whether the payment will be made from the money Greece raised yesterday by selling €1.138 billion in 6-month T-bills or from the several millions euro the country has raised by making settlement for arrears to the state. Fact is that Greece has been left without creditors’ bailout tranches since August 2014.
The good news does not hinder the usual Cassandras to predict that Greece will default by May 12th, if Athens and the creditors will not come to an agreement over the Reforms Program and the debt-ridden country will not manage to receive the last bailout tranche of 7.2 billion euro. It is Cassandras’ job after all to see disasters only and put their bet on a non-agreement.
Much will depend on the Euro Working Group that had a teleconference yesterday and is supposed to have one today too. However, the media reports about “progress vs non-progress” are very controversial so far.
Side note: Economic “prophets” had it wrong, April 9th is not the Day of Default for Greece. Some religious prophets have claimed thought that April 9th is the Day of Reckoning in terms of Energy. So be prepare to feel the good vibes, reckon and confess your sins!