Sunday, 18 September 2011

Debt crisis continues

After Geithner Strikes Out In Poland, Papandreou Cancels U.S. Trip And Hurries To Greece
We will have to wait to hear why Papandreou abruptly changed his plans.  Perhaps the crisis is coming to a head?


17 September, 2011

A few hours ago Timothy Geithner was in Poland promoting his plan for a EuroTARP, while Greek PM George Papandreou was preparing to fly to New York for meetings with the U.N. and the IMF.

But something went wrong.

Geithner's meeting ended in discord with no pledge to recapitalize banks.

Papandreou canceled his trip after talking to Finance Minister Evangelos Venizelos, who had been in Poland with Geithner, planning instead to return to Greece.

"The prime minister judged that he should not be away. He wants to ensure that all of Greece's commitments (to its European Union partners) are fulfilled," government spokesman Ilias Mossialos told Reuters.

Greece meets with the Troika next week to secure the next $8 billion loan tranche.




Is September 20 Greek Default Day?


If Greece is going to default, September 20th seems to be as good a day as any. Actually, it is far better than most to be GD-Day.

Two big bonds, the 4.5% of 2037 and the 4.6% of 2040 both have coupon payments due that day, totalling 769 Million Euro.  So if the IMF wanted to avoid letting another billion euro go down the drain, September 20th would be a good day to do it.  The IMF seems to have delayed approving another tranche for now, so Greece must already have the money for this payment?

For article GO HERE

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