{"id":10620,"date":"2015-08-01T18:24:22","date_gmt":"2015-08-01T23:24:22","guid":{"rendered":"http:\/\/olduvai.ca\/?p=10620"},"modified":"2015-08-01T18:24:22","modified_gmt":"2015-08-01T23:24:22","slug":"the-great-greek-fudge","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=10620","title":{"rendered":"The Great Greek Fudge"},"content":{"rendered":"<h3><strong><a href=\"http:\/\/www.zerohedge.com\/news\/2015-08-01\/great-greek-fudge\" target=\"_blank\">The Great Greek Fudge<\/a><\/strong><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user5\/imageroot\/2015\/07\/alpha%20bank%20cleppe_0.jpg\" alt=\"\" width=\"600\" height=\"330\" \/><\/p>\n<p><b><\/b><em><strong>A third Greek bailout involving loans from the European Stability Mechanism (ESM), the eurozone\u2019s bailout scheme, is now being negotiated. The start was quite rocky, with haggling over the precise<a href=\"http:\/\/www.theguardian.com\/business\/2015\/jul\/24\/greek-debt-crisis-talks-stall-hotel-choice\">location\u00a0<\/a>in Athens where negotiations need to take place and Greek officials once\u00a0<a href=\"https:\/\/twitter.com\/russian_market\/status\/626676565267623936\">again withholding information\u00a0<\/a>to creditors. Therefore, few still believe that it will be possible to conclude a deal in time for Greece to repay\u00a0<a href=\"https:\/\/twitter.com\/russian_market\/status\/626676565267623936\">3.2 billion euro<\/a>\u00a0to the ECB on 20 August. Several national Parliaments in the Eurozone would need to approve a final deal, which would necessitate calling their members back from recess around two\u00a0 weeks before the 20th, so it\u2019s weird that French EU Commissioner Pierre Moscovici still\u00a0<a href=\"http:\/\/www.ft.com\/intl\/fastft\/351421\/pierre-moscovici-deal-with-greece-not-too-late\">seems\u00a0<\/a>so confident that the deadline can be met.<\/strong><\/em><\/p>\n<p><strong>If indeed there is no deal, Greece is likely to request a second so-called \u201cbridge loan\u201d to allow it to pay the ECB, firmly within the Eurozone tradition of the creditor providing the debtor cash in order to pay back the creditor<\/strong>. France, which is most eager to keep Greece inside the Eurozone, is afraid that bilateral bridge loans from Eurozone countries wouldn\u2019t be approved by the more critical member states, as this would risk France having to foot this bill on its own, perhaps with Italy. Not exactly a rosy prospect for socialist French President Hollande, who\u2019s already struggling to contain the far right anti-euro formation Front National.<\/p>\n<p><span class=\"Apple-style-span\">The only European fund practically available to provide a bridge loan is the European Financial Stabilisation Mechanism (EFSM), a fund created in May 2010, which has been raising 60 billion euro on the markets, with the EU\u2019s \u20ac1 trillion Budget as collateral. The EFSM belongs not just to Eurozone member states, but to all EU member states.<\/span><\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Great Greek Fudge A third Greek bailout involving loans from the European Stability Mechanism (ESM), the eurozone\u2019s bailout scheme, is now being negotiated. The start was quite rocky, with haggling over the preciselocation\u00a0in Athens where negotiations need to take place and Greek officials once\u00a0again withholding information\u00a0to creditors. Therefore, few still believe that it will [&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":[7752,3325,7753,7754,285,4029,333,359,1167,418,1512,1464,1479,1046,4696,4318],"class_list":["post-10620","post","type-post","status-publish","format-standard","hentry","category-economics","tag-alistair-darling","tag-creditors","tag-czech","tag-dominique-strauss-kahn","tag-eurozone","tag-finland","tag-france","tag-germany","tag-greece","tag-imf","tag-ireland","tag-italy","tag-netherlands","tag-poland","tag-portugal","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10620","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=10620"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10620\/revisions"}],"predecessor-version":[{"id":10621,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10620\/revisions\/10621"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10620"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10620"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10620"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}