– IMF Payment Sends Greek Yields Lower; Athens Warns “Next Month Is A Different Matter” (ZeroHedge, April 9, 2015):
A central bank official, according to The FT, said that Greece has repaid the €450m it owed the International Monetary Fund today. Bond yields have fallen across the Greek curve with 10Y GGBs now at 11.1% (down 70bps from Tuesday’s highs). Greek stocks are not as impressed and are giving back their gains. Tsipras, on return from Moscow, explained Greece “was not a beggar…asking other countries to solve its problem,” but as a senior Greek official earlier this week said that while it would be able to make Thursday’s IMF repayment, it will still exhaust its cash reserves very soon and “next month is a different matter.” HSBC points out that the real crisis point looms on the 12th May and FinMin Varoufakis warns the “asymmetric union” that they “have learned nothing from economic history.”
– Greece Wins More ECB Emergency Cash (Bloomberg, April 9, 2015):
Greece secured an increase in emergency funding available to its banks as Finance Minister Yanis Varoufakis said he’s confident of reaching an aid agreement with European partners this month.
The European Central Bank’s Governing Council raised the cap on Emergency Liquidity Assistance provided by the Bank of Greece by 1.2 billion euros ($1.3 billion) to 73.2 billion euros in a telephone conference on Thursday, said two people familiar with the discussion. That was more than the 700 million-euro increase granted last week. An ECB spokesman declined to comment.
The amount approved matched what Greece had sought from the ECB and comes amid growing concern about the perilous state of Greece’s finances. Varoufakis said his country isn’t looking outside Europe to resolve its crisis after Prime Minister Alexis Tsipras met Russian President Vladimir Putin on Wednesday.
“We should be very clear: our bailout fallout needs to be dealt with in the European family,” Varoufakis said in an interview with Bloomberg Television’s Manus Cranny in Paris. “This government is not seeking an extra-European solution to a European problem.”
Greece, Europe’s most-indebted state, is negotiating with euro-area countries and the International Monetary Fund on the terms of its 240 billion-euro rescue. The standoff, which has left Greece dependent upon ELA, risks leading to a default within weeks and the country’s potential exit from the euro area.