Greece seeks urgent Bridge financing

Graham_Devon

Greece is to make an urgent bid to raise funds from the financial markets in case it does not get another tranche of bailout aid in time to repay debts.

On Tuesday, it plans to issue bonds, repayable in one and three months, to cover debt repayments due on Friday.

The bond issue is to raise 3.12bn euros ($4bn; £2.4bn), to help the country repay creditors owed about 4bn euros.

Now, forgive my ignorance here, but how does Greece think it's going to repay the bonds in 1-3 months, when it's used the bond money to repay other creditors?

It's bankrupt if it doesn't repay those creditors, as if it can't pay them, it hasn't got the bailout.

Am I missing something? This has got to a classic example of peter and paul!?

Oh, and Cyprus now needs a bailout too to pay it's creditors. The creditors mainly being those who are giving them the bailout.

Mrs_Bones

Please will someone put the euro out of it's misery and just shoot the poor thing. It's cruel this, letting it limp along in agony. If it had been an animal the RSPCA would have been involved long ago.

Thrugelmir

Graham_Devon wrote: »

Now, forgive my ignorance here, but how does Greece think it's going to repay the bonds in 1-3 months, when it's used the bond money to repay other creditors?

Short term borrowing appears to be Greece's only option.

Perhaps we are witnessing the end......

CLAPTON

greece doesn't need to know how to repay it's debts

it's the debtors who need to do the thinking

wotsthat

Graham_Devon wrote: »

Now, forgive my ignorance here, but how does Greece think it's going to repay the bonds in 1-3 months, when it's used the bond money to repay other creditors?

Who's going to be daft enough to give them a bridging loan - someone looking for an expensive haircut?

I'm sure they're more worried about getting the money than they are about repaying it. If a default's on the cards they may as well squeeze as much cash as they can from their creditors.

Then once they've defaulted they can start getting emergency aid.

paso11

Mrs_Bones wrote: »

Please will someone put the euro out of it's misery and just shoot the poor thing. It's cruel this, letting it limp along in agony. If it had been an animal the RSPCA would have been involved long ago.

Tell that to the goons in Brussels. This isn't about Greece, everyone knows that's a lost cause, is about an elitist project being kept alive at all costs

The idiots who lent them money should take the hit

It's deeply immoral that Greek babies born today are born into debt servitude

Wookster

grizzly1911

Essentially it is asking for forbearance from its lenders.

They will no doubt get a hefty late payment penalty they won't pay either.

A bit like "the cheque is in the post" and other such promises.

vivatifosi

grizzly1911 wrote: »

A bit like "the cheque is in the post" and other such promises.

Philip Ammerman has been saying as much in the excellent Atticus blog. Last month he wrote about the potential for Greek collapse here:

http://www.philip-atticus.com/2012/10/the-greek-collapse.html

Rather worryingly, this blog, which has always struck me as even-handed and a good analysis of what is going on there, ended this particular article with (my bolding):

Instead of supporting real reform, the three successive governments since October 2009 have catered to the worse instincts of demagoguery and political patronage, and done everything possible to preserve and expand their own power structures. The few true reformers (and they are indeed very few) have been outnumbered and outflanked. While much has been accomplished, it is nowhere near what is should be.

And along the way, the PASOK-ND political elite has lost touch with its voters, and has failed to make any kind of case for reform, or provide any positive vision for the future.

The rise of Golden Dawn and SYRIZA indicate that society is already at the breaking point and is looking for new “solutions”, no matter how improbably these may be.

As a result, I do not expect the current government to last beyond May or June of next year. And with at least two political parties actively arming and equipping their paramilitary networks and engaging in what amounts to protection rackets in urban areas, one does not have to be a genius to see what comes next.

michaels

Previously it was suggested that this particular can only needed to be kicked to beyond the US election.....

The fact Greece have turned to Wonga economics is not really an encouraging sign.

MacMickster

michaels wrote: »

The fact Greece have turned to Wonga economics is not really an encouraging sign.

Sadly this is worse than Wonga economics. They are not merely taking out payday loans at extortionate rates of interest.

They have no payday. They are taking out loans to repay previous loans and interest with no hope of ever repaying them, whilst at the same time pawning anything of value that they have.

Default is inevitable, as is the demise of the Euro. The only people who don't know this are those who REALLY should.