Posted on 04/14/2015 6:22:37 AM PDT by mykroar
Greece is preparing to take the dramatic step of declaring a debt default unless it can reach a deal with its international creditors by the end of April, according to people briefed on the radical leftist government’s thinking.
The government, which is rapidly running out of funds to pay public sector salaries and state pensions, has decided to withhold €2.5bn of payments due to the International Monetary Fund in May and June if no agreement is struck, they said.
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“We have come to the end of the road . . . If the Europeans won’t release bailout cash, there is no alternative [to a default],” one government official said. A Greek default would represent an unprecedented shock to Europe’s 16-year-old monetary union only five years after Greece received the first of two EU-IMF bailouts that amounted to a combined €245bn.
The warning of an imminent default could be a negotiating tactic, reflecting the government’s aim of extracting the easiest possible conditions from Greece’s creditors, but it nevertheless underlined the reality of fast-emptying state coffers.
(Excerpt) Read more at ft.com ...
Always someone else's fault
And the release of bailout cash will help smooth the way for economic reforms in Greece: increase the retirement age, reduce government spending, lower tax rates to reduce tax avoidance and evasion.
Somehow, those changes won’t occur if the bailout cash is received or not received.
“Give us more money, or we’ll hold our breath until we die!”
My Big Fat Greek Spending Problem
Hey Greece. Just shut up and do it. We’re tired of your lies and bluster.
They’ve already said that they would decrease the retirement age back to what it used to be and that they would increase government spending.
Exactly my point and the end result-requests for more bailout funds in the future.
The Greeks just elected a Socialist leader. I’m sure that will be helpful...
...what could possibly go wrong.....
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