Greece’s rejects creditor pleas to change course

Greece’s government

WORLD EXCLUSIVES

DAILY NEWS

Date:- 30-6-15

European equity markets

Greece’s government entered its final day in an EU bailout defiantly rejecting eleventh-hour pleas from

its eurozone creditors to change course.

www.MCRWORLD.com - Since 2015The IMF default

The IMF default, which will make Athens the first developed country ever to go into “arrears” with the

fund, is not expected to have a direct impact on Greece’s status in

the eurozone; credit rating agencies and EU bailout lenders

have signalled they will not consider non-payment a “credit

event” that triggers other defaults — a move that would bankrupt

Athens immediately. It is now on a path that will lead to it defaulting on a €1.6bn loan repayment to the International Monetary Fund and

being without a financial safety net for the first time in five years.

NEWSBreking news

But the expiry of the bailout at midnight in Brussels is likely to force the European Central Bank to reconsider its emergency lending to Greek banks, which is the only lifeline keeping the financial system from collapsing.Although the ECB is unlikely to cut off lending completely, it could require banks to post more collateral to get the emergency loans. Some officials worry that at least one of Greece’s four systemic banks would not have enough collateral to survive if the ECB decided to agree to a “haircut”. “The exit of Greece from the euro area, which used to be a theoretical question, can unfortunately no longer be ruled out,” Benoit Coeuré, the ECB board member responsible for Greek issues, said in an interview published on Tuesday in the French financial daily Les Echos.According to EU diplomats, Jean-Claude Juncker, the European Commission president, on Monday night made a last-ditch effort to convince Alexis Tsipras, the Greek prime minister, to change course, calling the Greek prime minister to ask him to accept a final offer published by the commission on Sunday.“The referendum is taking place normally,”

said the official, though he cautioned Athens may make its own proposal later on Tuesday. But the debt restructuring offer would only be along the lines of a

previous November 2012 agreement that Mr Tsipras has repeatedly said was

inadequate..

Date today 30-6-15

Mr Juncker held out the possibility of debt relief if Mr Tsipras agreed to the offer’s terms and campaigned for a “yes” vote in Sunday’s referendum.

“In our view, the Greek government’s decision to hold a national referendum on official creditors’ loan proposals indicates that Prime Minister Alexis Tsipras will prioritise

domestic politics over the country’s financial and economic stability, commercial debt service, and membership of the eurozone,” S&P wrote.

Haris Theoharis, a former secretary-general in charge of revenue collection, told the Greek parliament Tuesday morning that a team of officials from the finance ministry was

preparing an emergency plan for Greece to readopt the drachma.Mr Theoharis said officials from the government’s general accounting office, which

handles the national accounts, were working on the plan at the prime minister’s office.A government spokesman immediately denied that such a team existed.

Mr Theoharis was sacked last year by the centre-right government after encouraging a Greek oligarch to pay back taxes worth several hundred euros, on grounds he had “made

a mistake”. He is now an MP with the small centre-left To Potami party.Use of templates European equity markets, which opened calmer than on Monday,

cautiously welcomed the media reports despite the expectation of the IMF default. The FTSE Eurofirst 300, which was down 1.67 per cent, is down 0.63 per cent while Italian and Spanish government bond yields are now lower on the day, reflecting a burst of

strength in prices.Mariano Rajoy, Spain´s prime minister, on Tuesday joined fellow eurozone leaders by

issuing a blunt warning to Greek voters that a “no” vote will force the country to leave the eurozone.

He also argued that it would be “good for Greece” if Mr Tsipras, who is backing a “no” vote, was defeated in the plebiscite, paving the way for talks with “another government”

in Athens.

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