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Thursday, April 16, 2015

Greece Planning To Default and Grexit

Yannis Koutsomitis reports that Greek officials have made an informal approach to the IMF to delay repayments of loans to the international lender, highlighting the parlous state of Greek finances, but were told that no rescheduling was possible.

According to officials briefed on the talks by both sides, Athens was persuaded not to make a specific request for a delay to the Fund, which is owed almost a €1bn in two separate payments due in May.

However, this is something that Greece is now denying.
Whilst a denial is all very well, the reality is that Varoufakis will (as per City A.M.) on Friday (on the tail end of his last chance saloon meeting with Obama) meet with infamous sovereign debt lawyer Lee Buchheit, who has helped numerous countries restructure their debt. Buchheit is a partner at top US law firm Cleary Gottlieb.

Varoufakis is clearly not meeting Buchheit to talk about the weather!

Greece has of course denied that it is planning to leave the euro.

We must of course disregard the denial and look to the reality, Greece is quite evidently planning to:

- Default
- Exit, and
- Devalue its soon to be reintroduced Drachma

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