Greece out of Funds by Month End – Default and Drachma Imminent?


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Greece out of Funds by Month End – Default and Drachma Imminent?

  • Greek government to withhold IMF payments according to the FT
  • Prime Minister Tsipras denies preparing for default according to Reuters
  • Government funds to run out by end of month
  • Default would likely lead to “Grexit” and return to drachma
  • EU may not withstand uncertainty surrounding break-up of monetary union
  • Concern could trigger derivatives crisis and ‘Lehman moment’
  • Like frogs in a pot of water that is very slowly coming to the boil
1,000 Greek Drachma Note
1,000 Greek Drachma Note

The Financial Times, citing unsourced “people briefed on the radical leftist government’s thinking” has made the claim that the Tsipras government in Athens has “has decided to withhold E2.5 billion of payments due to the International Monetary Fund in May and June if no agreement is struck”.

The Greek government was quick to deny the claim. “Greece … is not preparing for…

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