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You can find the current article at its original source at http://www.theguardian.com/business/live/2015/jun/30/greek-debt-crisis-day-of-decision-for-tsipras
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| Version 13 | Version 14 |
|---|---|
| Greece debt crisis: Athens fails to repay IMF as bailout runs out - as it happened | Greece debt crisis: Athens fails to repay IMF as bailout runs out - as it happened |
| (30 days later) | |
| 1.17am BST | 1.17am BST |
| 01:17 | 01:17 |
| Summary: Greece on its own after IMF default | Summary: Greece on its own after IMF default |
| And that’s it... Another day for the history books, with: | And that’s it... Another day for the history books, with: |
| Here’s the full story. | Here’s the full story. |
| Related: Greek failure to make IMF payment deals historic blow to eurozone | Related: Greek failure to make IMF payment deals historic blow to eurozone |
| We’ll be back with a new liveblog in the morning, to do it all again. Thanks for reading, commenting, and your help. Goodnight! GW | We’ll be back with a new liveblog in the morning, to do it all again. Thanks for reading, commenting, and your help. Goodnight! GW |
| 1.15am BST | 1.15am BST |
| 01:15 | 01:15 |
| Confirmation that a 3rd bailout will be very hard to agree: | Confirmation that a 3rd bailout will be very hard to agree: |
| No new bailout while @tsipras_eu & @yanisvaroufakis remain power, says senior German conservative http://t.co/h3ZktrocJd | No new bailout while @tsipras_eu & @yanisvaroufakis remain power, says senior German conservative http://t.co/h3ZktrocJd |
| 12.54am BST | 12.54am BST |
| 00:54 | 00:54 |
| The Guardian isn’t the only UK paper leading on Greece tomorrow -- the crisis is also splashed on the FT (again!) and The Scotsman, plus the International New York Times. | The Guardian isn’t the only UK paper leading on Greece tomorrow -- the crisis is also splashed on the FT (again!) and The Scotsman, plus the International New York Times. |
| Wednesday's FT front page: Last-minute Greek appeal over bailout rejected #tomorrowspaperstoday #BBCPapers pic.twitter.com/EZvbklhPgM | Wednesday's FT front page: Last-minute Greek appeal over bailout rejected #tomorrowspaperstoday #BBCPapers pic.twitter.com/EZvbklhPgM |
| Wednesday's Scotsman: Greece in 11th hour bid for bail out from EU #tomorrowspaperstoday #bbcpapers pic.twitter.com/ZlY4EaALwf | Wednesday's Scotsman: Greece in 11th hour bid for bail out from EU #tomorrowspaperstoday #bbcpapers pic.twitter.com/ZlY4EaALwf |
| Wednesday's International NY Times: Desperate Greece seeks new bailout #tomorrowspaperstoday #bbcpapers pic.twitter.com/cryheRhICR | Wednesday's International NY Times: Desperate Greece seeks new bailout #tomorrowspaperstoday #bbcpapers pic.twitter.com/cryheRhICR |
| Wednesday's Guardian: Price of a deal: Greece left mired in debt for decades #tomorrowspaperstoday #bbcpapers pic.twitter.com/fT1Np2dESK | Wednesday's Guardian: Price of a deal: Greece left mired in debt for decades #tomorrowspaperstoday #bbcpapers pic.twitter.com/fT1Np2dESK |
| 12.24am BST | 12.24am BST |
| 00:24 | 00:24 |
| Our Europe editor, Ian Traynor, captures the historic nature of tonight’s events (I’ve added links to earlier points in the blog): | Our Europe editor, Ian Traynor, captures the historic nature of tonight’s events (I’ve added links to earlier points in the blog): |
| Greece is left alone insolvent and almost bankrupt today after five years of €240bn in European bailouts dried up and the country became the first in the European Union to default on its creditors. The country failed to make a €1.5bn payment to the International Monetary Fund on time and thrust the eurozone into an emergency. | Greece is left alone insolvent and almost bankrupt today after five years of €240bn in European bailouts dried up and the country became the first in the European Union to default on its creditors. The country failed to make a €1.5bn payment to the International Monetary Fund on time and thrust the eurozone into an emergency. |
| The long-running debt debacle left Greece on the brink of financial collapse, worsening recent years of wrenching austerity, and represented a historic blow to a Europe committed to the irreversibility of its 16-year-old single currency. | The long-running debt debacle left Greece on the brink of financial collapse, worsening recent years of wrenching austerity, and represented a historic blow to a Europe committed to the irreversibility of its 16-year-old single currency. |
| The deadline on Greece’s bailout programmes, inaugurated in 2010, ended at midnight. The country was left without a financial lifeline for the first time since. | The deadline on Greece’s bailout programmes, inaugurated in 2010, ended at midnight. The country was left without a financial lifeline for the first time since. |
| In a sudden referendum called on creditors’ bailout terms which formally no longer exist, Greeks are to vote on Sunday on what EU leaders say is a choice between quitting or staying in the euro. | In a sudden referendum called on creditors’ bailout terms which formally no longer exist, Greeks are to vote on Sunday on what EU leaders say is a choice between quitting or staying in the euro. |
| Following a fortnight of non-stop brinkmanship at the highest level of EU leadership over how to resolve the impasse over Greece’s financial rescue, the radical leftwing government of the prime minister, Alexis Tsipras, tabled surprise new proposals on Tuesday, demanding that the bailout concluding yesterday be rolled over into a new two-year programme worth almost €30bn to Greece to be spent on servicing debt. | Following a fortnight of non-stop brinkmanship at the highest level of EU leadership over how to resolve the impasse over Greece’s financial rescue, the radical leftwing government of the prime minister, Alexis Tsipras, tabled surprise new proposals on Tuesday, demanding that the bailout concluding yesterday be rolled over into a new two-year programme worth almost €30bn to Greece to be spent on servicing debt. |
| The demand included calls for a month of bridging finance to avoid the IMF default and for broader debt relief without mentioning Greek concessions in return for acceptance. It was promptly spurned by key creditors as too little too late. | The demand included calls for a month of bridging finance to avoid the IMF default and for broader debt relief without mentioning Greek concessions in return for acceptance. It was promptly spurned by key creditors as too little too late. |
| “We won’t negotiate about anything new at all until a referendum, as planned, takes place,” said Chancellor Angela Merkel of Germany on Tuesday. “This evening the programme expires.” | “We won’t negotiate about anything new at all until a referendum, as planned, takes place,” said Chancellor Angela Merkel of Germany on Tuesday. “This evening the programme expires.” |
| The 19 finance ministers of the single currency bloc talked for merely an hour by teleconference on Tuesday evening and dismissed the last-minute brinkmanship from Tsipras. | The 19 finance ministers of the single currency bloc talked for merely an hour by teleconference on Tuesday evening and dismissed the last-minute brinkmanship from Tsipras. |
| But Jeroen Dijsselbloem, the Dutch finance minister who chairs the committee, said the ministers would confer again on Wednesday and that Athens was expected to present further proposals on how to resolve the critical situation..... | But Jeroen Dijsselbloem, the Dutch finance minister who chairs the committee, said the ministers would confer again on Wednesday and that Athens was expected to present further proposals on how to resolve the critical situation..... |
| More, if your nerves can take it, here: | More, if your nerves can take it, here: |
| Related: Eurozone thrust into state of emergency as Greece left without financial lifeline | Related: Eurozone thrust into state of emergency as Greece left without financial lifeline |
| Updated | Updated |
| at 12.28am BST | at 12.28am BST |
| 12.16am BST | 12.16am BST |
| 00:16 | 00:16 |
| Katie Allen | Katie Allen |
| Analysts at SocGen agree that any new bailout would take time, which has implications for the ECB in terms of getting its own repayments due in July from Greece. | Analysts at SocGen agree that any new bailout would take time, which has implications for the ECB in terms of getting its own repayments due in July from Greece. |
| “Our view is that agreeing on a third bailout will be a lengthy process, which suggests that Greece will miss the ECB payment on 20 July.” | “Our view is that agreeing on a third bailout will be a lengthy process, which suggests that Greece will miss the ECB payment on 20 July.” |
| €6.7bn of Greek bonds owned by the ECB mature in July and August, according to this handy breakdown of Greek debts from Reuters. | €6.7bn of Greek bonds owned by the ECB mature in July and August, according to this handy breakdown of Greek debts from Reuters. |
| 12.13am BST | 12.13am BST |
| 00:13 | 00:13 |
| Greece now joins Somalia, Sudan and Zimbabwe in arrears at the IMF tonight. | Greece now joins Somalia, Sudan and Zimbabwe in arrears at the IMF tonight. |
| Here's who else is in arrears right now (missed payments to IMF) as of end of May pic.twitter.com/waP6hNRf4I | Here's who else is in arrears right now (missed payments to IMF) as of end of May pic.twitter.com/waP6hNRf4I |
| 12.09am BST | 12.09am BST |
| 00:09 | 00:09 |
| Now, attention shifts to Frankfurt and the European Central Bank. | Now, attention shifts to Frankfurt and the European Central Bank. |
| The ECB, which has been providing drip-feed support to Greece’s ravaged banks, will discuss whether to increase, or potentially withdraw emergency funding at its scheduled governing council meeting on Wednesday. | The ECB, which has been providing drip-feed support to Greece’s ravaged banks, will discuss whether to increase, or potentially withdraw emergency funding at its scheduled governing council meeting on Wednesday. |
| Referring to Greece’s sudden request for a new deal on Tuesday, the economic research team at Daiwa Capital Markets drew a link to Wednesday’s ECB meeting and discussions about emergency liquidity assistance (ELA). | Referring to Greece’s sudden request for a new deal on Tuesday, the economic research team at Daiwa Capital Markets drew a link to Wednesday’s ECB meeting and discussions about emergency liquidity assistance (ELA). |
| In a note published before, but in anticipation of, the missed IMF deadline, they wrote: | In a note published before, but in anticipation of, the missed IMF deadline, they wrote: |
| “Given the length and ultimate failure of the talks on the current programme, it would likely take several months to agree the detail of a new third programme, if indeed such a programme could be agreed at all. (The creditors would surely expect the current Greek government to be negotiating in bad faith.) | “Given the length and ultimate failure of the talks on the current programme, it would likely take several months to agree the detail of a new third programme, if indeed such a programme could be agreed at all. (The creditors would surely expect the current Greek government to be negotiating in bad faith.) |
| So, this latest ruse from Tsipras might be interpreted as an attempt to boost the ‘No’ vote in the coming weekend’s referendum by suggesting that it need not necessarily represent a vote for Grexit. It might also seek to give cover to the ECB to maintain ELA tomorrow if and when the IMF payment has been missed.” | So, this latest ruse from Tsipras might be interpreted as an attempt to boost the ‘No’ vote in the coming weekend’s referendum by suggesting that it need not necessarily represent a vote for Grexit. It might also seek to give cover to the ECB to maintain ELA tomorrow if and when the IMF payment has been missed.” |
| 12.07am BST | 12.07am BST |
| 00:07 | 00:07 |
| Over in Brussels, the death of Greece’s second bailout programme has been confirmed too. | Over in Brussels, the death of Greece’s second bailout programme has been confirmed too. |
| The failure to get an extension tonight - and the broader failure of the two sides to reach a deal since January (!) – means the €7.2bn of loans won’t be handed over. It also meatns that €10.9bn set aside to recapitalise Greece’s banks has vanished too. | The failure to get an extension tonight - and the broader failure of the two sides to reach a deal since January (!) – means the €7.2bn of loans won’t be handed over. It also meatns that €10.9bn set aside to recapitalise Greece’s banks has vanished too. |
| Klaus Regling, CEO of the EFSF (the body which made the loans to Greece) argues that the bailout programme was delivering results: | Klaus Regling, CEO of the EFSF (the body which made the loans to Greece) argues that the bailout programme was delivering results: |
| Due to the economic policies adopted under the EFSF programme, the country was on a good path towards strong growth until the second half of 2014. The many sacrifices which the Greek people had to make were paying off. | Due to the economic policies adopted under the EFSF programme, the country was on a good path towards strong growth until the second half of 2014. The many sacrifices which the Greek people had to make were paying off. |
| Greece managed to cut its budget deficit and regain competitiveness. The country was able to access financial markets again and saw its high unemployment start declining. | Greece managed to cut its budget deficit and regain competitiveness. The country was able to access financial markets again and saw its high unemployment start declining. |
| According to the OECD and World Bank, Greece was a reform champion until 2014, with encouraging growth prospects. This trend can continue if the Greek population decides to return to the path of reform within the euro area.” | According to the OECD and World Bank, Greece was a reform champion until 2014, with encouraging growth prospects. This trend can continue if the Greek population decides to return to the path of reform within the euro area.” |
| Boom - ESM http://t.co/vsWIyyHM1R Bang - IMF https://t.co/v8LjsVez9e Bosh..? | Boom - ESM http://t.co/vsWIyyHM1R Bang - IMF https://t.co/v8LjsVez9e Bosh..? |
| 12.00am BST | 12.00am BST |
| 00:00 | 00:00 |
| Greece shouldn’t hold out much hope of an extension to its €1.5bn bill -- even though the IMF said it would consider the request. | Greece shouldn’t hold out much hope of an extension to its €1.5bn bill -- even though the IMF said it would consider the request. |
| The process of reviewing Greece's request to extend its repayment schedule by itself would take weeks. https://t.co/LHVvhGcuxU | The process of reviewing Greece's request to extend its repayment schedule by itself would take weeks. https://t.co/LHVvhGcuxU |
| And the fund hasn't approved a repayment extension for three decades, considering it bad, fruitless policy. https://t.co/KUURjo9jCP | And the fund hasn't approved a repayment extension for three decades, considering it bad, fruitless policy. https://t.co/KUURjo9jCP |
| 11.47pm BST | 11.47pm BST |
| 23:47 | 23:47 |
| I am restructuring You are in arrears She has defaulted | I am restructuring You are in arrears She has defaulted |
| 11.44pm BST | 11.44pm BST |
| 23:44 | 23:44 |
| Katie Allen | Katie Allen |
| On top of the ‘is it, or is it not, a default’ debate, there is the question over whether this constitutes a credit event. | On top of the ‘is it, or is it not, a default’ debate, there is the question over whether this constitutes a credit event. |
| This matters, because a credit event (which isn’t simply what it says on the tin: someone not meeting a creditor demand) triggers payouts on credit default swaps - a kind of insurance contract against a country or company defaulting. | This matters, because a credit event (which isn’t simply what it says on the tin: someone not meeting a creditor demand) triggers payouts on credit default swaps - a kind of insurance contract against a country or company defaulting. |
| The credit ratings agencies have already said not paying the IMF, which relates to official money and not private bondholders, is not a credit event. | The credit ratings agencies have already said not paying the IMF, which relates to official money and not private bondholders, is not a credit event. |
| In any case it is up to the International Swaps and Derivatives Association (ISDA) to rule over what is and isn’t a credit event. More on ISDA and all that in this piece from 2012. | In any case it is up to the International Swaps and Derivatives Association (ISDA) to rule over what is and isn’t a credit event. More on ISDA and all that in this piece from 2012. |
| 11.38pm BST | 11.38pm BST |
| 23:38 | 23:38 |
| Katie Allen | Katie Allen |
| In the genteel world of the IMF, one falls into ‘arrears’ rather than plunging into ‘default’. | In the genteel world of the IMF, one falls into ‘arrears’ rather than plunging into ‘default’. |
| But, if it looks like a default, swims like a default, and quacks like a default, then it’s probably a default, my colleague Katie Allen explains. | But, if it looks like a default, swims like a default, and quacks like a default, then it’s probably a default, my colleague Katie Allen explains. |
| As near-bankrupt hurtles towards its deadline to pay the International Monetary Fund on Tuesday, financial experts are grappling with the question of whether a failure to come up with the cash would constitute a sovereign default. | As near-bankrupt hurtles towards its deadline to pay the International Monetary Fund on Tuesday, financial experts are grappling with the question of whether a failure to come up with the cash would constitute a sovereign default. |
| A default occurs when a country, or other borrower, fails to meet its obligation to repay a lender on time. But it is not, technically, the borrower who defaults: it is the lender who declares that the borrower is in default. | A default occurs when a country, or other borrower, fails to meet its obligation to repay a lender on time. But it is not, technically, the borrower who defaults: it is the lender who declares that the borrower is in default. |
| Rating agencies have declared that missing a payment to an official body like the IMF isn’t the same as defaulting on a loan to, say, a commercial bank. | Rating agencies have declared that missing a payment to an official body like the IMF isn’t the same as defaulting on a loan to, say, a commercial bank. |
| But, as Gary Jenkins, chief credit strategist at LNG Capital, said: | But, as Gary Jenkins, chief credit strategist at LNG Capital, said: |
| “There has been lots of talk that this is not really a default. Indeed the rating agencies have stated that they would not consider a non-payment as a default. All I can say on this matter is that if you do not pay the absolute last lender of resort I think that’s a default.” | “There has been lots of talk that this is not really a default. Indeed the rating agencies have stated that they would not consider a non-payment as a default. All I can say on this matter is that if you do not pay the absolute last lender of resort I think that’s a default.” |
| Related: Greece debt crisis: when is a default not a default? | Related: Greece debt crisis: when is a default not a default? |
| 11.32pm BST | 11.32pm BST |
| 23:32 | 23:32 |
| The IMF has issued a short statement, confirming that Gerry Rice told reporters a few minutes ago that: | The IMF has issued a short statement, confirming that Gerry Rice told reporters a few minutes ago that: |
| “I confirm that the SDR 1.2 billion repayment (about EUR 1.5 billion) due by Greece to the IMF today has not been received. We have informed our Executive Board that Greece is now in arrears and can only receive IMF financing once the arrears are cleared. | “I confirm that the SDR 1.2 billion repayment (about EUR 1.5 billion) due by Greece to the IMF today has not been received. We have informed our Executive Board that Greece is now in arrears and can only receive IMF financing once the arrears are cleared. |
| “I can also confirm that the IMF received a request today from the Greek authorities for an extension of Greece’s repayment obligation that fell due today, which will go to the IMF’s Executive Board in due course.” | “I can also confirm that the IMF received a request today from the Greek authorities for an extension of Greece’s repayment obligation that fell due today, which will go to the IMF’s Executive Board in due course.” |
| Statement by the IMF on Greece: http://t.co/PuXWGYLhbg | Statement by the IMF on Greece: http://t.co/PuXWGYLhbg |
| 11.28pm BST | 11.28pm BST |
| 23:28 | 23:28 |
| Greece is not the first country to be in arrears to the IMF, and (spoiler alert) it certainly won’t be the last. | Greece is not the first country to be in arrears to the IMF, and (spoiler alert) it certainly won’t be the last. |
| But it is the first ‘advanced economy’ to be in this state (Argentina simply threw the IMF out). And most other countries have only taken such a dramatic step because they were riven with conflict. | But it is the first ‘advanced economy’ to be in this state (Argentina simply threw the IMF out). And most other countries have only taken such a dramatic step because they were riven with conflict. |
| These are not normal times in the eurozone. This really is a moment. | These are not normal times in the eurozone. This really is a moment. |
| A history of countries with protracted arrears with the IMF (via http://t.co/dlmNVXX7uJ): pic.twitter.com/ALHgOl6vM3 | A history of countries with protracted arrears with the IMF (via http://t.co/dlmNVXX7uJ): pic.twitter.com/ALHgOl6vM3 |
| 11.24pm BST | 11.24pm BST |
| 23:24 | 23:24 |
| Here’s how the news broke in Washington, via Reuters. | Here’s how the news broke in Washington, via Reuters. |
| The International Monetary Fund on Tuesday confirmed Greece had not made its 1.5 billioneuro loan repayment to the Fund, making it the first advanced economy to ever be in arrears to the Fund. | The International Monetary Fund on Tuesday confirmed Greece had not made its 1.5 billioneuro loan repayment to the Fund, making it the first advanced economy to ever be in arrears to the Fund. |
| The missed payment, the largest in the Fund’s history, is equivalent to a default, in that both imply a breach of Athens’ obligations. | The missed payment, the largest in the Fund’s history, is equivalent to a default, in that both imply a breach of Athens’ obligations. |
| IMF spokesman Gerry Rice said Greece can now only receive further IMF funding once the arrears are cleared. | IMF spokesman Gerry Rice said Greece can now only receive further IMF funding once the arrears are cleared. |
| Rice confirmed that Greece had asked for a last-minute repayment extension earlier on Tuesday, which the Fund’s board will consider “in due course.” | Rice confirmed that Greece had asked for a last-minute repayment extension earlier on Tuesday, which the Fund’s board will consider “in due course.” |
| 11.17pm BST | 11.17pm BST |
| 23:17 | 23:17 |
| IMF: Greece didn't make its payment | IMF: Greece didn't make its payment |
| Breaking news from Washington -- the International Monetary Fund has confirmed that Greece did not make its €1.5bn repayment today. | Breaking news from Washington -- the International Monetary Fund has confirmed that Greece did not make its €1.5bn repayment today. |
| It also confirms that Athens did make a request to extend the payment. And the board will now consider that request “in due course”. | It also confirms that Athens did make a request to extend the payment. And the board will now consider that request “in due course”. |
| I don’t know immediately if that is a possible reprieve, or the Fund just following the official policy.... | I don’t know immediately if that is a possible reprieve, or the Fund just following the official policy.... |
| 11.07pm BST | 11.07pm BST |
| 23:07 | 23:07 |
| Historic moment: Greece in arrears to the IMF | Historic moment: Greece in arrears to the IMF |
| That’s it. There was no last-second reprieve. No sudden appearance of €1.5bn in the IMF’s bank account. | That’s it. There was no last-second reprieve. No sudden appearance of €1.5bn in the IMF’s bank account. |
| Greece’s financial crisis has just entered a new phase. | Greece’s financial crisis has just entered a new phase. |
| #GREECE's bailout has expired and the country is in arrears to the IMF. | #GREECE's bailout has expired and the country is in arrears to the IMF. |
| oooph! the saddest day(s) in europe for a long time #greece | oooph! the saddest day(s) in europe for a long time #greece |
| H-Hour, D-Day #Greece | H-Hour, D-Day #Greece |
| Updated | Updated |
| at 11.41pm BST | at 11.41pm BST |
| 11.00pm BST | 11.00pm BST |
| 23:00 | 23:00 |
| That’s it. It’s 6pm in Washington....so we’re about to find if Greece is the first developed country to default on an IMF loan...... | That’s it. It’s 6pm in Washington....so we’re about to find if Greece is the first developed country to default on an IMF loan...... |
| And midnight in Brussels, meaning its second bailout programme is over. | And midnight in Brussels, meaning its second bailout programme is over. |
| 10.56pm BST | 10.56pm BST |
| 22:56 | 22:56 |
| Tick, tock, tick, tock.... | Tick, tock, tick, tock.... |
| #Greece's default countdown on CNN. #Greferendum #GreeceCrisis pic.twitter.com/v4gwxstvnm | #Greece's default countdown on CNN. #Greferendum #GreeceCrisis pic.twitter.com/v4gwxstvnm |