Search This Blog

Sunday, September 18, 2011

Greek Default looming again - will Greece hurry up and default already!

Things Get Worse, As Troika Reportedly Demands Massive New Spending Cuts In Greece

None of the news coming out of Greece this weekend has been reassuring, starting with the dramatic development whereby George Papandreou had to turn his plane around, while en-route to DC, in order to attend to matters back in Athens.
Now, according to a Greek newspaper (via Matina Stevis) the troika (EU, ECB, IMF) is demanding the Papandreou government sack another 100,000 public sector workers over the next two years in exchange for the next tranche of bailout money. The Troika is also demanding deeper pension cuts than had been planned to.
Further compounding worries is that the troika will not be heading to Athens as planned on Monday, and instead will be doing a teleconference.
All in all, markets will be opening on Monday (most likely) without any sense that things are closer to resolved. In fact the opposite, since last week it looked like the next tranche of the first bailout was a done deal.

No comments:

Post a Comment