Greece...

antrobus

Aretnap wrote: »

Greece will probably get a red bill in about a week's time. Then one from debt collectors threatening to mess up their credit rating.

That's exactly it; they will indeed get a red bill in about a week's time.:)

Sadly though, whilst private individuals can not pay their bills in relative secrecy, when governments do the same it gets plastered all over the front pages. Thus their credit rating is already shot.

Standard & Poor's Ratings Services lowered Greece's credit rating one notch further into junk territory on Tuesday, saying Prime Minister Alexis Tsipras is threatening the country's economic stability by sending creditors' latest proposal to a public vote. The country's long-term credit rating was lowered to "CCC minus," from "CCC."

http://www.marketwatch.com/story/sp-lowers-greeces-credit-rating-to-ccc-minus-2015-06-29

AG47

antrobus wrote: »

That's exactly it; they will indeed get a red bill in about a week's time.:)

Sadly though, whilst private individuals can not pay their bills in relative secrecy, when governments do the same it gets plastered all over the front pages. Thus their credit rating is already shot.

I would say its the other way around, millions of small people go bankrupt every year, they do not get treated well, its the countries that get treated well when they go bankrupt.

Aretnap

antrobus wrote: »

Sadly though, whilst private individuals can not pay their bills in relative secrecy, when governments do the same it gets plastered all over the front pages. Thus their credit rating is already shot.

Indeed, which was sort of the point of the joke. Maybe a smilie would have helped.

antrobus

AG47 wrote: »

I would say its the other way around, millions of small people go bankrupt every year, they do not get treated well, its the countries that get treated well when they go bankrupt.

That would be a different issue altogether.

After all, being late making a payment, or indeed defaulting on one particular financial obligation, is not of the same order as bankruptcy.

Aretnap wrote: »

Indeed, which was sort of the point of the joke. Maybe a smilie would have helped.

It was indeed difficult to tell. Particularly when Greece will actually be receiving a 'red letter' from the IMF in about a week's time.:)

worldtraveller

vivatifosi wrote: »

Varoufakis has resigned

"We bid farewell to our former Greek colleague."

https://twitter.com/IvanTheK/status/617968002370248704

worldtraveller

worldtraveller wrote: »

So, from what I understand, the Greek banks need between around €300m and €400m a day to cover outflows. Allegedly they have around €500m left. Therefore, we will surely see the inevitable further can kicking of more ELA from the ECB, either today or tomorrow. The farce continues!

Crashy_Time wrote: »

Wouldn`t bet on it as this will weaken their hand with the next country that pops up to "restructure" it`s debts. My opinion now is that the EU robots will force Greece out and hope that their fate puts others off rocking the debt boat. If political and financial contagion spreads across the Eurozone it could be a trigger for house price falls in the UK as our economy weakens further.

According to Bloomberg sources the ECB were due to have a conference call beginning at 6:00 pm (1600 GMT) tonight after The Bank of Greece requested an increase in ELA liquidity, although the ECB refused to confirm the information. It'll be interesting to see what develops.

danothy

worldtraveller wrote: »

According to Bloomberg sources the ECB were due to have a conference call beginning at 6:00 pm (1600 GMT) tonight after The Bank of Greece requested an increase in ELA liquidity, although the ECB refused to confirm the information. It'll be interesting to see what develops.

Is the conference call you refer to related to this press release?: http://www.ecb.europa.eu/press/pr/date/2015/html/pr150706.en.html

6 July 2015 - ELA to Greek banks maintained

• Emergency liquidity assistance maintained at 26 June 2015 level
• Haircuts on collateral for ELA adjusted
• Governing Council closely monitoring situation in financial markets

The Governing Council of the European Central Bank decided today to maintain the provision of emergency liquidity assistance (ELA) to Greek banks at the level decided on 26 June 2015 after discussing a proposal from the Bank of Greece.

ELA can only be provided against sufficient collateral.

The financial situation of the Hellenic Republic has an impact on Greek banks since the collateral they use in ELA relies to a significant extent on government-linked assets.

In this context, the Governing Council decided today to adjust the haircuts on collateral accepted by the Bank of Greece for ELA.

The Governing Council is closely monitoring the situation in financial markets and the potential implications for the monetary policy stance and for the balance of risks to price stability in the euro area. The Governing Council is determined to use all the instruments available within its mandate.

Reproduction is permitted provided that the source is acknowledged.

Seemingly a 'no' to Greece on the more ELA front. Also, I wonder what 'adjusted' means here.

worldtraveller

danothy wrote: »

Is the conference call you refer to related to this press release?: http://www.ecb.europa.eu/press/pr/date/2015/html/pr150706.en.html

Seemingly a 'no' to Greece on the more ELA front. Also, I wonder what 'adjusted' means here.

It looks like it, for today anyway. As Robert Peston has just posted his take on this on the BBC website:

"In other words, the ECB has brought forward the fateful moment when the Greek banking system ceases to function in any meaningful way, for want of cash.....Wednesday night therefore becomes a hard deadline for the Greek government to make serious progress in bailout negotiations with creditors - in the hope that the ECB is then persuaded to end the freeze on lending to banks.

Because without the ELA tap being turned back on, Greek banks will be out of cash. And it would be economic suicide for Greece to stay in the euro if the price of that is a banking system that is crippled for months, causing recession and even depression.

In other words, the ECB has reinforced what the economy minister Georgios Stathakis told me earlier today: there are just two days for progress in urgent negotiations to keep Greece in the euro."

ruggedtoast

I just don't understand why the Germans have to be so beastly to their neighbours every time they become powerful themselves.

There, I said it.

remorseless

ruggedtoast wrote: »

I just don't understand why the Germans have to be so beastly to their neighbours every time they become powerful themselves.

There, I said it.

Why do you think they're beastly? Maybe motherly :beer: I would say! They want good old little Greece to grow up and stop spending mum's money!