Greece
raids emergency account to repay debt - (news.yahoo.com) Greece
admitted Tuesday it was scraping the bottom of the barrel for cash as another
huge debt repayment loomed, adding pressure to reach a rescue deal with its
EU-IMF creditors to avoid default and crashing out of the eurozone. Athens only
managed to repay 750 million euros ($845 million) due Tuesday to the
International Monetary Fund after tapping into an emergency account, a central
bank source told AFP as alarm grew over Greece's dire finances. But billions
more in loan repayments are due over the next three months, and Greece's
Finance Minister Yanis Varoufakis warned that his country risked running out of
cash within two weeks if no deal was reached by then with its international
creditors to unlock the last tranche of aid funds. The crisis sent European
stocks sinking Tuesday, mirroring sentiments across Asia and on Wall Street.
Second
Largest Coal Miner East Of The Mississippi Files For Bankruptcy: 4000 Patriot
Coal Jobs In Peril - (www.zerohedge.com) At
last check Patriot Coal had around 4000 employees. Those soon to be former
employees will soon require yet another massive seasonal adjustment by the BLS
to be "adjusted" out, because moments ago the second largest coal
miner east of the Mississippi and the second largest producer of thermal coal
in the eastern US filed Chapter 11 bankruptcy. As part of its filing, the
Peabody spinoff announced it had obtained a $100 million DIP, which will be used
to fund the company until it finds a "strategic buyer" or otherwise
restructures its balance sheet. Alas, with the price of coal being where it is
these days, the most likely outcome for ticker formerly known as PCX is an
outright liquidation and another 4000 people in the rest belt left without jobs
who, just like the case of Denny Ryder of Decatur, IL, will promptly disappear from the labor force so as not to spoil the US "recovery"
propaganda.
Greece's
'war cabinet' prepares to battle EU creditors as anger mounts - (www.telegraph.co.uk) The country's radical-Left leaders have
concluded that there is little to be gained from any further concessions to EMU
creditors. Greece's "war cabinet" has resolved to defy the European creditor
powers after
a nine-hour meeting on Sunday, ensuring a crescendo of brinkmanship as the
increasingly bitter fight comes to a head this month. Premier Alexis Tsipras
and the leading figures of his Syriza movement agreed to defend their "red
lines" on pensions and collective bargaining and prepare for battle
whatever the consequences, deeming the olive-branch policy of recent weeks to
have reached a dead end. "We have agreed on a tougher strategy to stop
making compromises. We were unified and we have a spring our step once
again," said one participant. The Syriza government knows that this an
extremely high-risk strategy. The Greek treasury is already empty and emergency funds seized from
local authorities and
state entities will soon run out.
Greece
Effectively Defaults To IMF Using SDR Reserves To "Repay" Fund; 1
Month Countdown Begins - (www.zerohedge.com) When
Monday’s Eurogroup meeting concluded without an agreement between Greece and
its creditors, it should have been game over for Athens. With pensioners at
their breaking point and with local governments reluctant to comply with a
decree mandating a sweep of excess cash reserves, the idea that Greece would
somehow be able to scrape together €750 million euros to make a scheduled
payment to the IMF today seemed far-fetched at best which is whywe asked the
following question Monday afternoon: Where, if not from local governments who
have been extremely reluctant to comply with Athens' cash sweep decree, and if
not from the IMF which will apparently not be paying itself tomorrow after all,
is Greece going to get three quarters of a billion euros in the next 12 hours? We
now know the answer to that question. As Bloomberg reports, citing Kathimerini,
Greece tapped IMF reserves to pay .. well, to pay the IMF: Greece used up
~EU650m reserves from its SDR IMF holdings account to meet loan payment of
~EU750m due to Fund today, Kathimerini newspaper reports, without citing
anyone.
Greece avoids default with IMF payment but
warns of imminent crisis - (news.yahoo.com) Greece
narrowly averted a default Tuesday that could have seen it crashing out of the
euro, but warned it faced another cash crunch within two weeks without a
bailout deal with its EU financiers. Athens's radical new government managed to
scrape enough cash together Monday to place the order for the repayment of 750
million euros ($840 million) of IMF loans, the finance ministry said, pledging
to honour both its international and domestic debt obligations. Greece won some
support in the latest round of debt talks as it battles to keep itself solvent,
but eurozone finance ministers demanded more key reforms before they agree to
release the final 7.2-billion-euro tranche of its EU-IMF bailout.
Euro Debt Rout Deepens as Commerzbank Says Don’t Be a Hero Yet - (www.bloomberg.com)
Bonds Decline From U.S. to Japan, Extending Global Debt Rout - (www.bloomberg.com)
European Stocks Slide Amid Greek Aid Talks as Bonds Deepen Rout - (www.bloomberg.com)
Emerging Stocks Retreat With Currencies Amid Greece Concern - (www.bloomberg.com)
No respite in sell-off of low-risk bonds - (www.reuters.com)
Greece Tapped Reserves at IMF to Make Debt Repayment-Government Officials - (www.reuters.com)
[El-Erian] Greece Inches Closer to an Accident - (www.bloomberg.com)
[Sharma] The Federal Reserve Asset Bubble Machine - (online.wsj.com)
[Trouble May Trickle Down From Companies’ Top Lines - (online.wsj.com)
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