{"id":10090,"date":"2015-07-15T07:22:57","date_gmt":"2015-07-15T12:22:57","guid":{"rendered":"http:\/\/olduvai.ca\/?p=10090"},"modified":"2015-07-15T07:22:57","modified_gmt":"2015-07-15T12:22:57","slug":"uk-furious-at-proposed-e7-billion-greek-ponzi-perpetuating-bridge-loan","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=10090","title":{"rendered":"UK Furious At Proposed \u20ac7 Billion Greek Ponzi-Perpetuating Bridge Loan"},"content":{"rendered":"<h3 class=\"title\"><a href=\"http:\/\/www.zerohedge.com\/news\/2015-07-15\/uk-furious-proposed-\u20ac7-billion-greek-ponzi-perpetuating-bridge-loan\" target=\"_blank\">UK Furious At Proposed \u20ac7 Billion Greek Ponzi-Perpetuating Bridge Loan<\/a><\/h3>\n<p>The two most important stories out of Greece on Tuesday were: 1) the IMF\u2019s leaked report on Greek debt sustainability, and 2) the race to secure between \u20ac7 and \u20ac12 billion in bridge financing to hold Greece over until the ESM gets off the ground.<\/p>\n<p>Although a new program is in the works and should get the greenlight once Tsipras succeeds in forcing Greek lawmakers to legislate away their sovereignty and any semblance of pride they have left, Athens has bills that need paying, the most important of which comes due to the ECB (on its SMP holdings) on July 20. The Greeks must make the payment to Mario Draghi &#8211; otherwise the central would be compelled to interrupt the liquidity drip that\u2019s keeping the Greek banking sector from collapsing altogether. There\u2019s also the issue of public sector salaries and pension payments which Greeks would prefer to receive in euros as opposed to the IOUs suggested by German FinMin Wolfgang Schaeuble.<\/p>\n<p>We\u00a0<a href=\"http:\/\/www.zerohedge.com\/news\/2015-07-14\/schaeubles-modest-proposal-greek-bridge-loan-pay-salaries-ious\">outlined the options available<\/a>\u00a0for bridge financing on Tuesday morning, noting that all alternatives involve creditors effectively paying themselves either literally or in spirit or otherwise entail the perpetuation of some manner of ponzi scheme (i.e. allowing Greece to sell T-bills to Greek banks).<\/p>\n<p>On Wednesday, the EU Commission decided to go the EFSM route and will look to tap \u20ac7 billion of the \u20ac11-12 billion that remains in the fund. The formal request by the EU Commission says the funds from the EFSM &#8220;aim to provide a bridge financing to allow Greece to face some urgent financial obligations until it starts receiving financial assistance under a new programme from the ESM [and] would safeguard financial stability in the Union and in the euro area.&#8221;<\/p>\n<p>This isn\u2019t as simple as it sounds. The EFSM was replaced by the ESM and wasn\u2019t really supposed to be used again, so going back to the well is problematic from a political perspective. There are a number of issues here, but for the sake of brevity, here\u2019s\u00a0<a href=\"http:\/\/www.ft.com\/intl\/cms\/s\/0\/7631e6d2-2ac9-11e5-8613-e7aedbb7bdb7.html#axzz3frK7YEAx\">FT\u2019s summary<\/a>:<\/p>\n<p>&nbsp;<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>UK Furious At Proposed \u20ac7 Billion Greek Ponzi-Perpetuating Bridge Loan The two most important stories out of Greece on Tuesday were: 1) the IMF\u2019s leaked report on Greek debt sustainability, and 2) the race to secure between \u20ac7 and \u20ac12 billion in bridge financing to hold Greece over until the ESM gets off the ground. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1719,7311,3325,200,3755,6936,279,285,291,1167,7310,418,1044,2858,820,4318],"class_list":["post-10090","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bond","tag-bridge-loan","tag-creditors","tag-default","tag-edb","tag-esm","tag-eu","tag-eurozone","tag-fail","tag-greece","tag-greenlight","tag-imf","tag-mario-draghi","tag-tsipras","tag-uk","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10090","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10090"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10090\/revisions"}],"predecessor-version":[{"id":10091,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10090\/revisions\/10091"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10090"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10090"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10090"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}