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Thursday, July 23, 2015

Greece Needs Another Bridging Loan

Despite the delusional belief held by some that Greece is "fixed", the reality is that it is far from "fixed".

Negotiations about the next bailout (estimated to be around Euro85BN) are expected drag on until December. In the meantime Greece needs more money to fund its ongoing IMF payments, as last week's bridging loan of Euro7BN has already been swallowed up on IMF/ECB payments.

Thus the European Financial Stability Mechanism (EFSM) will probably be tapped again next month, and creditors' money will  be used to pay the self same creditors.

Circular funding at its best and most ludicrous!

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