In March of 2013 the Troika gave Cyprus a “take it or leave it offer” that destroyed many savers who were foolish enough to keep money in Cypriot banks despite obvious troubles.
Given that Greece needs a third bailout, odds Greece receives a similar kind of offer increase every day.
Last week Greece averted a default on a loan repayment to the IMF only by borrowing money from the IMF to pay the IMF back. For details please see my May 12 article Greece Empties IMF Reserve Account to Pay IMF.
Next month Greece has still more payment obligations and the reserve fund is tapped out. Where will the money come from?
Take it or Leave It
The Financial Times discusses the situation in Tsipras Letter Reveals Precariousness of Greece’s Finances.
Greece came so close to defaulting on last week’s 750m International Monetary Fund repayment that the prime minister warned IMF chief Christine Lagarde he could not pay it without EU aid.
Alexis Tsipras wrote to Ms Lagarde, warning that the IMF repayment would be missed unless the European Central Bank immediately raised its curbs on Greece’s ability to issue short-term debt.
This post was published at Global Economic Analysis on Monday, May 18, 2015.
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