According to Mike Ingram, Market Commentator at BGC Partners, the Eurozone is playing a game of extend and pretend with Greece, and repayment is unlikely and he can’t believe that markets are not reacting.
The Greek Black hole expands
Looking at the timeline for scheduled Greek repayments, Ingram couldn’t hide his fatigue, highlighting a comment by the Greek economics minister this morning that the €50bln of state assets set to be transferred to a holding fund and used to make repayments, simply doesn’t exist.
He adds that there is no ownership of the programme and economically unworkable. The 20th July is a huge date to watch as the Greeks must pay £3.5bln back to the ECB, and if not the ELA will be pulled, leading to a collapse of the Greek economy.
Greeks never paying back debt in 100 years
Zak Mir, Technical Analyst, added that the IMF have come out to say the current situation is unworkable and that Greece will not pay their bills in 100 years. Ingram expressed his shock in that the market is buying this situation and remaining relatively calm, as it is patently obvious that the numbers do not add up.