Greece has had between two and three bailouts since its debt crisis began in 2010 (depending on what you believe constitutes a bailout). As stressful as the numerous rounds of negotiation have been from 2010 until 2015, Greek leaders have never before floated the idea of default…. until now. Greece said Sunday that it won’t have the money it is due to repay to the International Monetary Fund next month unless it strikes a deal with international creditors over further rescue funding.
Interior Minister Nikos Voutsis told privately owned television station Mega that Greece is scheduled to repay EUR1.6 billion ($1.76 billion) to the IMF between June 5-19, but the payments cannot be met. “This money will not be given,” he said. “It does not exist.” This is a clear warning shot to the Troika. It’s the first time a Greek leader has threatened default publicly. Greece officially runs out of money in two weeks. So this situation will intensify. I expect we’ll see greater volatility as a result. The general trend for the Euro is down, but there will be sharp “relief” bounces based on rumors and innuendos from any Euro “official” who wants the Euro to remain intact. FULL REPORT