As expected Greece missed the IMF payment deadline. Greece had to pay $1.6 billion by yesterday and they missed the deadline. Greece tried to get a bail out fund in the eleventh hour from the Central Bank of Europe but failed to convince ministers of Euro zone. Greece is now on the verge of coming out of Euro zone anytime. Greece is still trying to manage the Euro zone’s ministers for a last minute bail out fund, it’s really difficult to do though.
Greece appealed to the Euro zone’s council of ministers for a fund to pay the debt of IMF. But it seems they won’t get fund this time. Greece had been funded three times before. Euro zone’s ministers denied to provide the breathing fund in the last minute. And for that, Greece missed the deadline as expected.
For the fist time, any Euro zone country submersed into the IMF’s clauses. IMF won’t provide a single penny until Greece repay the debt and alerted other monetary bodies with a circular of it. Greece won’t pay the debt itself until it gets some funds from EU.
Earlier IMF suggested some initial level remedies like increase the VAT and taxes on medical goods, services and on electricity. But Greece denied to do that. If those terms were followed, IMF would not provide any sticky deadline then. Greece accused IMF and other monetary bodies just after IMF gave the suggestions to increase revenue and started to give that a political color.
IMF spokesman Gerry Rice said in the press meet-
[quote_box_center]We have informed our Executive Board that Greece is now in arrears and can only receive IMF financing once the arrears are cleared [/quote_box_center]
But surprisingly after criticizing IMF and other bodies, Greece requested IMF to extend the deadline of the payment of $1.6 billion.
Greece is desperately looking for the last minute help from the Euro zone’s ministers. They are trying to get a positive nod from them and get a bail out fund from European stability fund. This is not how international diplomacy or fund (Finance) should be directed, a progression of confounding a minute ago proposals in an air of mounting tumult. Without another bailout, Greece is in desperate strait cut off from all international financing and literary skating on hazardously thin ice of economic break down. Anytime, it can melt away and whole economy will collapse. On the off chance that it can’t reimburse a debt to the ECB (European Central Bank) on 20 July, that would likely be the end. It is coming up short on choices to keep it in the euro zone. Is Greece really coming out of Euro zone? Analyzing current situation, we can say if ECB does not support Greece to meet the payment schedule of IMF.
Recent Greek Proposal are not so Clear to Accept
Though Greece has prepared some proposals to get rid from this, many of those actually are not hundred percent clear to accept. Some piece of the new deal Greece has recommended would include a rebuilding of its enormous debts – however some of its proposals won’t be worthy to other euro zone nations to accept. So there is instability every step of the way and a lot of public acting as Greece gets ready for a choice on Sunday.
Just to befuddle matters even more, some EU officials have proposed that there have been signs from the Greek powers that if the diagrams of a deal should be possible in the following couple of days, the choice could even be drop.
Euro group authorities and Dutch Finance Minister Jeroen Dijsselbloem prior said it would be insane to broaden the Greek bailout past its Tuesday due date as Athens was declining to acknowledge the European proposals on the table.
Greece’s left-wing Syriza government, chose on an against grimness stage, has been in gridlock with its creditors for a considerable length of time over the terms of a third bailout. Talking after the conference call with other eurozone ministers, Mr Dijsselbloem said that a Greek ask for another €29.1bn European help system would be considered in a phone conference on Wednesday.
Greece’s solicitation on Tuesday requested funds from Europe’s bailout fund the European Stability Mechanism and in addition a rebuilding of Greece’s public debt. Be that as it may, German Chancellor Angela Merkel prior said she had ruled out all the further negotiations until after Sunday’s choice, which will inquire as to whether they need to acknowledge the deal offered by their creditors.
The Greek government took the one-sided choice to hold a vote a weekend ago, infuriating euro zone ministers. Then, the US Treasury said on Tuesday it was asking all gatherings to squeeze forward with negotiations that put Greece on a way toward economic growth inside of the euro zone. The European Commission – one of the “troika” of creditors alongside the IMF and the euro zone’s European Central Bank – needs Athens to raise taxes and slice welfare spending to meet its debt commitments.
Greece Capped ATM Withdrawl Limit to €60 a day
Evaluations agency Fitch cut Greece’s FICO assessment (Credit Rating of the Greek Banks) from “CCC” to “CC” on Tuesday evening, which is one level over a full default. Apprehensions of a default on Greece’s immense public debt of €323bn have prompted long lines of individuals at ATM booths and counters. Withdrawals are topped at just €60 a day.
Greek banks did not open for the current week after talks in the middle of Greece and its creditors destitute down. In any case, up to 1,000 bank offices were because of reopen on Wednesday to permit retired people – a considerable lot of whom don’t utilize bank cards – to withdraw up to €120.
On Tuesday evening, a great many ace EU dissenters conquered stormy climate and accumulated outside the Greek parliament in Athens to urge a “yes” vote in a submission on Sunday about whether the nation ought to acknowledge its creditors’ proposals.
It takes after a comparable showing by those supporting a “no” vote – the way favored by Mr Tsipras on Monday. EU ministers have cautioned that a no vote dismissing creditors’ proposals would mean Greece leaving the euro zone – however Mr Tsipras says he doesn’t need this to.