Greece Delays Its Payment To IMF As It Moves Closer To Disorderly Default

Greece exitGreece missed their deadline on Friday for an initial €300 million payment to the IMF, the first payment towards 1.6 billion that is due in June.

Greek Prime Minister Alexis Tsipras failed to show up for negotiations in Brussels on Friday after Athens requested to have their €1.6 billion IMF loans bundled together with the next deadline pushed out until June 30th when Greece’s bailout extension officially expires.

Tspiras told Greek parliament on Friday that “time is running out” while declaring that Greece’s creditors should take back their “absurd” demands and withdraw their conditions for loaning money to the cash strapped country.

“The proposals from the creditors are clearly unrealistic” Tsipras told politicians in Athens on Friday.

Greece is moving rapidly towards a full blown disorderly default the longer it delays its payments to the IMF, et al.

In truth, Athens has little time to waste and if a new bailout deal is not reached before the end of next week, it will be difficult for Greek Prime Minister Alexis Tsipras and his anti-austerity Syriza Party to reach parliamentary approval before the final bailout deadline at the end of June which could unleash capital controls, deposit withdrawals, and social upheaval if Greece has a disorderly default.

Although the majority of Greece’s population support Syriza’s anti-austerity platform, it is also true that the majority of Greece’s population wants Greece to remain in the 19 member euro-area currency union.

Greece’s leftist anti-austerity government won the elections in January making promises that it is having problems delivering.

Greece’s colorful Finance Minister Yanis Varoufakis asked German Chancellor Angela Merkel on his website to give Greece a “Speech of Hope ” similar to a 1946 speech given by U.S. Secretary of State James Byrnes in the aftermath of World War II that called for a less punitive approach towards Germany and more growth oriented policies.

German Chancellor Angela Merkel and U.S. President Barack Obama met ahead of an upcoming G 7 Meeting and discussed Greece.

White House spokesman Josh Earnest told reporters on Sunday that the two leaders agreed that Greece must reform and return to sustainable growth.

-Johnathan Schweitzer

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