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Saturday, April 11, 2015

Update on Greece

From time to time we will check back in on Greece to see how things are going. Greece just made its payment due to the IMF prompting Jim Rickards to post this tweet. Most news articles are questioning how much longer Greece can last. We will probably know a lot more in a couple of months. Below some quotes from the latest news articles.

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Reuters: Greece Makes IMF Payment - But Doubt Remains

"Greece made a crucial payment to the International Monetary Fund and won extra emergency lending for its banks on Thursday but it remained unclear whether Athens can satisfy skeptical creditors on economic reforms before it runs out of money.

Euro zone partners gave Greece six working days to improve a package of proposed reforms in time for finance ministers of the currency bloc to consider whether to release more funds to keep the country afloat when they meet on April 24."  . . . . . 
"There was some mild relief on Thursday when Greece made its latest payment to the International Monetary Fund, with bond yields sliding. (Yield measures risk, so when they decline it suggests there's less risk of a default.)
That sort of reaction is a bit like having a celebratory drink because you've paid your electricity bill — it's probably not a good signal about your financial health.
Greece is currently negotiating a short-term bailout extension that it doesn't really want, offered by European institutions which don't trust the Greek government and approved by other governments that are running out of patience. That's the bottom line. Athens currently has until about April 15 to present a completed reform list to its creditors."   . . . . . .
"Russia's president Vladimir Putin says his country would consider making loans to Greece if the two countries move forward on joint energy projects.
During what was seen by some as a provocative visit by Greek prime minister Alexis Tsipras to Moscow, the two leaders discussed working together on a planned gas pipeline through Turkey into southern Europe.
Mr Putin said in the context of that kind of project, Russia could make loans to Greece."
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