July 31, 2012

August 20 bond maturities pressuring talks

Athens and the troika leadership are still arguing over whether to revise (or not revise) the existing cost-cutting schedule. Greek leadership is saying it is (politically) impossible to hit all targets, and are demanding a relaxing of certain date targets, pushing many cuts out to 2016. Germany, among others, is not budging on requiring the treaty dates to be meant.

The Greek dilemma is the rapidly decreasing cash reserves on hand, and €3.2 billion in bond payments due on August 20.

But a more serious issue is the audit happening right now in Athens from troika investigators who are measuring how off-target Greece is on treaty obligations. At stake is the €30 Billion tranche payment Greece is scheduled to receive in September 2012. If the IMF, ECB and EU decide to cease the flow of loan money, the result will be the long-predicted default.

The three-party coalition now ruling Greece (New Democracy, PASOK and Democratic Left) at present has only been able to show approximately €8.1 billion in cuts from the scheduled €11 billion that were due in June 2012.

Zakynthos Shipwreck Beach

Advertisement: I am an Amazon affiliate

Fodor's Essential Greece: with the Best of the Islands (Full-color Travel Guide) – Amazon

• Illustrated experiences guide to the top things to see and do
• Multiple itineraries to help organize your days
• 40+ detailed maps for easy navigation
• Color photos throughout
• Local recommendations for sights, dining, hotels, nightlife, shopping, and activities
• “Best of” features covering beaches, food and drink, and more
• Trip-planning tips on when to go, getting around, avoiding crowds, and saving money
• Historical and cultural insights into Greek people, art, architecture, and cuisine
• Special features on the Acropolis, Greek gods and heroes, Greek history, Meteora, and more
• Local writers highlighting lesser-known places
• Greek-language primer with useful words and phrases
• Up-to-date coverage of Athens, Santorini, Mykonos, Crete, Corfu, Rhodes, the Aegean, Sporades and Saronic islands, Delphi, Central Macedonia, Meteora, and the Peloponnese
• 800 Pages

The famous "shipwreck beach" on Zakynthos, reached by boat. See the photo enlarged.