Greece Says That It Will Default On June 5th, And Moody’s Warns Of A ‘Deposit Freeze’

Greece Euro - Public DomainThe Greek government says that a “moment of truth” is coming on June 5th.  Either their lenders agree to give them more money by that date, or Greece will default on a 300 million euro loan payment to the IMF.  Of course it won’t technically be a “default” according to IMF rules for another 30 days after that, but without a doubt news that Greece cannot pay will send shockwaves throughout the financial world.  At that point, those holding Greek bonds will start to panic as they realize that they might not get paid as well.  All over Europe, there are major banks that are holding large amounts of Greek debt and derivatives that are related to the performance of Greek debt.  If something is not done to avert disaster at the last moment, a default by Greece could be the spark that sets off a major European financial crisis this summer.

As I discussed the other day, neither the EU nor the IMF have given any money to Greece since August 2014.  So now the Greek government is just about out of money, and without any new loans they will not be able to pay back the old loans that are coming due.  In fact, things are so bad at this point that the Greek government is openly warning that it will default on June 5th

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Bill
Bill
8 years ago

The Euro is on the way to dying a fast death, but what are the evil psychopaths in Brussels doing, they are going outlaw cash, now that’s the beast system for you, and the people of Europe will go along with this just for the preservation of the elitist scumbag bankers. The people in Europe better wake up fast or all the wealth will be confiscated in one fell swoop by the demonic moron liars in Brussels; where filth, Perversion, debauchery, and sexual immorality are at an all time high.