The Euro50BN Greek Fuck Off Fund

On July 8th I wrote the following:

"As I have noted several times before on this site, a fund (aka "fuck off money") has been set aside to be given to Greece as and when it exits, in order for Germany et al to wash their hands (with a "clean" conscience) of any further problems within Greece."

The value of the fund has now been disclosed, it was Euro50BN.

Greece will regret rejecting Schaeuble's offer.

Greek Banks Reopen

Greek banks have reopened today, with restricted services and capital controls still firmly in place.

The withdrawal limit of €60 per account per day has been replaced with a weekly limit of €420. 

 

This change  is designed to encourage people to withdraw their maximum weekly allowance today, thus giving the semblance of "normality" during the rest of the week (ie large queues today, and very few for the rest of the week).

Greek VAT Rise

From tomorrow Greece raises VAT to 23% on ouzo, meat, salt, sugar, tea, coffee & etc. Even cinema tix up! - So much for OXI at Greferendum.

— Russian Market (@russian_market) July 19, 2015

Not All Greek Banks Will Open

NOT ALL GREEK BANKS WILL OPEN ON MONDAY: SKAI TV

— MineForNothing (@minefornothing) July 17, 2015

Greece Dies A Little Bit More Everyday

Tsipras "won" the vote, at the cost of his party's support.

That was the easy bit!

Now all he has to do is stay in office, secure some funding in the short term then acquire Euro85BN in the coming months.

As I write this the Eurogroup conference call is underway, that will determine if Greece gets any short term funding.

Schaeuble Is Right

Despite the "#thisisacoup" hyperbole whipped up by the those with a rose tinted glasses view of the eurozone and Greek "democracy", and the US attempt to use the IMF as a bulldozer to force through its own geopolitical agenda, Schaeuble's Grexit plan was the best option on the table for Greece.

It is a pity that the Greeks choose to live in fantasy land wrt the eurozone!

Rethinking Wolfgang Schäuble. He's right about #Grexit pic.twitter.com/SVQ8hNwIz3

— Bruno Waterfield (@BrunoBrussels) July 15, 2015

Varoufakis Interview - Grexit Planned

As per The New Stasman Varoufakis was prepared to do three things:

- issue euro-denominated IOUs;
- apply a “haircut” to the bonds Greek issued to the ECB in 2012, reducing Greece’s debt;
- and seize control of the Bank of Greece from the ECB.

All nixed, thus he resigned.

However, he is doubtless busy writing his book!

Bank of England Rubbishes Greek Deal

* Bank of England's Carney says Greek deal has "big execution risks" on all sides, debt not sustainable in current form - RTRS

— Fabrizio Goria (@FGoria) July 14, 2015

UK Won't Fund Greece Deal

Osborne in Brussels: "the idea that British taxpayers are going to be on the line for this Greek deal is a complete non-starter."

— Faisal Islam (@faisalislam) July 14, 2015

One way or another the UK will end up footing some part of the bill!

Greece Needs Approximately Euro90BN

'Nuff said!

Greek Deal Online

Here is a link to the Greek "deal" in all its "glory".

By 15 July
• the streamlining of the VAT system and the broadening of the tax base to increase revenue;
• upfront measures to improve long-term sustainability of the pension system as part of a comprehensive pension reform programme;
• the safeguarding of the full legal independence of ELSTAT;
• full implementation of the relevant provisions of the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union, in particular by making the Fiscal Council operational before finalizing the MoU and introducing quasi-automatic spending cuts in case of deviations from ambitious primary surplus targets after seeking advice from the Fiscal Council and subject to prior approval of the Institutions;

Not a chance in hell!

Greek Bailout Deal Agreed????

Allegedly, if reports and headlines are to be believed (and the algos will certainly believe them), a bailout deal has been agreed.

As to whether the Greeks have agreed this, or indeed will action whatever it is, remains to be seen!

It seems unlikely, as per the FT Tsipras:

"agreed to sequestrate €50bn of Greek assets - for privatisation, bank recapitalisation and debt repayment - and put them into a special Athens-based fund. 

However, Greek officials warned that such violations of Greek sovereignty and democracy would be impossible to pass through a restive Greek parliament.

Mr Tsipras must implement the list of economic pledges by Wednesday as a pre-condition for a possible start to formal negotiations later this week on a financing package to stave off the bankruptcy of the fast-deteriorating economy."

The wheels will fall off this wagon before the ink is dry on the official Euro Summit statement!

Greece on Euro Knife Edge

I have cancelled #EUCO today. #EuroSummit to start at 16h and last until we conclude talks on #Greece

— Donald Tusk (@eucopresident) July 12, 2015

One things is for sure, the catering companies of Brussels have done very well out of the Greek crisis!

Greece Back To The Future

Greece managed to submit its proposal before yesterday's deadline.

The irony being that it is more or less the same as the one put forward by the Troika in June, which was rejected by Tsipras and the Greek people.

As Robert Peston says, it's more or less total "capitulation":

I've obtained copy of Athens' detailed reform proposals - almost total capitulation to creditors http://t.co/oGKMJ4l7Cx #GreeceCrisis

— Robert Peston (@Peston) July 10, 2015

Greece's D Day

Today really is the final deadline (even the eurozone won't flex this one again) for Greece to submit a detailed proposal on the back of yesterday's vague one.

The French are so worried about Greece screwing this up again, that they have sent a team of experts to Athens to go through and edit the proposal line by line before it is officially submitted.

Meanwhile the banks and stock exchange remain closed. Didn't Yanis promise that they would reopen on Tuesday?

ECB Governing Council member Ardo Hansson said in an interview in Estonian newspaper Postimees:

“A few months ago I wouldn’t have believed that Greece would leave the euro area. 

Now several months have passed without moving toward a solution. By now Greece’s situation is much worse than it was even 10 days ago. 

The situation isn’t hopeless but it is quickly and sharply deteriorating.” 

This will not end well!