Greece On a Road to Nowhere

Well the inevitable has happened. Greece is unable to make its payment to International Monetary Fund on June 5th.

Interior Minister Nikos Voutsis told privately owned television station Mega that Greece is scheduled to repay EUR1.6 billion ($1.76 billion) to the IMF between June 5-19, but the payments cannot be met.

“This money will not be given,” he said. “It does not exist.”

How do you think this will effect Greek economics, and the global markets?

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12 Comments
 

I'm fairly certain a Greek default has already largely been priced into the market, especially after the election of the de facto Greek Communist Party to power. Back in December or January I was 90% sure Greece would default on its debts, and I'm definitely not a debt guy.

I think the fact that the article has to clarify that the TV station is privately owned speaks volumes about the Greek economy and how over reliant it became on government. Can you imagine a news article on the U.S. making this clarification? "President Obama told CNN, the privately owned TV station, that he plans to..."

 

I'm in Santorini right now and haven't heard anyone say anything about the crisis. The economy is all tourism here so they're pretty insulated and I'm guessing it'll be the same in Mykonos this next week as well. Other areas are feeling it though; trash pickup in some lower income areas of Athens has now become "non-essential." That's not the case here, fortunately, but there's very little government anything (only seen one cop) so I don't think they're feeling the tightening too bad here.

That said, I was glad to see that they were able to delay the payment to the IMF because I would rather just not have to experience a country default firsthand.

Fantastic trip though, a little cooler than I remembered but the place here in Santorini has been beyond world-class.

If you or @Cardinal want any recs/sugs for Santorini or Mykonos, shoot me a PM.

 

So I've tried to figure out what voting "no" meant and I've found that "absolutely no one knows what comes next." I'll be going to Crete in a few weeks and I'm not sure what to expect. Do you guys think I can get through customs smoothly and just chill on the beach with no problems? Also, I have two layovers in Athens for 4 hours each and want to check out the city. Should I risk leaving and coming back? Just trying to get some opinions from people that have either been there or know what's going on.

 
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