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Greece confirms it will not repay IMF loan as its bailout program is due to expire
ATHENS, Greece - Greece is set to become the first developed nation to not pay its debts to the International Monetary Fund on time, as the country sinks deeper into a financial emergency that has forced it put a nationwide lockdown on money withdrawals.
Greece owes the IMF about 1.6 billion euros ($1.9 billion) by the end of Tuesday but has run out of money and after five months of talks with creditors, has no prospect of getting new rescue loans.
Finance Minister Yanis Varoufakis, asked whether Greece would meet Tuesday's repayment, replied: "no."
The European part of Greece's international bailout expires at the end of Tuesday, and with it any possible access to the remaining rescue loans the country needs to pay its debts.
"The program runs out tonight, at exactly midnight central European time," German Chancellor Angela Merkel said in Berlin. "I know of no solid indications to the contrary."
The heightened crisis, which peaked over the weekend after Prime Minister Alexis Tsipras called a referendum on creditor proposals for reforms in return for bailout loans, has increased fears the country could very soon fall out of the euro currency bloc.
If Greece doesn't repay the IMF by the deadline, it will be officially in arrears and will no longer have access to funding from the body until it clears its arrears. This, IMF chief Christine Lagarde told the BBC last week, has "never happened in the case of an advanced economy."
Straight after the referendum call, in which the government is advocating a "no" vote, Greeks began rushing to ATM machines. The referendum is set for Sunday and the government declared all banks will remain shut for at least a week. Greeks have been limited to cash withdrawals of 60 euros ($67) per day.
more
https://ca.finance.yahoo.com/news/gr...051536155.html
Puerto Rico's governor has a message for Washington D.C: change the law, we want the right to declare bankruptcy.
On the brink of default, Governor Alejandro García Padilla demanded that the U.S. government allow Puerto Rico, a commonwealth, access to chapter 9 bankruptcy. That's what Detroit used when it went belly up. At the moment, only cities, towns and other municipalities are able to declare bankruptcy.
"We cannot allow them to force us to choose between paying for our police, our teachers, our nurses, and paying our debt," Padilla said in a televised announcement Monday night in Spanish. "We have to act now."
Puerto Rico is running out of time. The island owes $73 billion that it can't pay. Its debt is already junk grade and has one of the lowest possible ratings.
"Now is the moment for us to call on Washington for concrete action," Padilla said, referring to the need to lobby Washington for change on Chapter 9.
The governor compared the island's financial situation to Detroit's, but unlike Detroit, Puerto Rico's only option is to settle its debt with its creditors on its own, which would take years.
Do you guys think Greece have the upper hand in this negotiation?. or Puerto Rico for that matter.
The last time someone did this was in the 80's when Argentina told the creditors (fuc.k y'all we aint paying!).
ATHENS, Greece - Greece is set to become the first developed nation to not pay its debts to the International Monetary Fund on time, as the country sinks deeper into a financial emergency that has forced it put a nationwide lockdown on money withdrawals.
Greece owes the IMF about 1.6 billion euros ($1.9 billion) by the end of Tuesday but has run out of money and after five months of talks with creditors, has no prospect of getting new rescue loans.
Finance Minister Yanis Varoufakis, asked whether Greece would meet Tuesday's repayment, replied: "no."
The European part of Greece's international bailout expires at the end of Tuesday, and with it any possible access to the remaining rescue loans the country needs to pay its debts.
"The program runs out tonight, at exactly midnight central European time," German Chancellor Angela Merkel said in Berlin. "I know of no solid indications to the contrary."
The heightened crisis, which peaked over the weekend after Prime Minister Alexis Tsipras called a referendum on creditor proposals for reforms in return for bailout loans, has increased fears the country could very soon fall out of the euro currency bloc.
If Greece doesn't repay the IMF by the deadline, it will be officially in arrears and will no longer have access to funding from the body until it clears its arrears. This, IMF chief Christine Lagarde told the BBC last week, has "never happened in the case of an advanced economy."
Straight after the referendum call, in which the government is advocating a "no" vote, Greeks began rushing to ATM machines. The referendum is set for Sunday and the government declared all banks will remain shut for at least a week. Greeks have been limited to cash withdrawals of 60 euros ($67) per day.
more
https://ca.finance.yahoo.com/news/gr...051536155.html
Puerto Rico's governor has a message for Washington D.C: change the law, we want the right to declare bankruptcy.
On the brink of default, Governor Alejandro García Padilla demanded that the U.S. government allow Puerto Rico, a commonwealth, access to chapter 9 bankruptcy. That's what Detroit used when it went belly up. At the moment, only cities, towns and other municipalities are able to declare bankruptcy.
"We cannot allow them to force us to choose between paying for our police, our teachers, our nurses, and paying our debt," Padilla said in a televised announcement Monday night in Spanish. "We have to act now."
Puerto Rico is running out of time. The island owes $73 billion that it can't pay. Its debt is already junk grade and has one of the lowest possible ratings.
"Now is the moment for us to call on Washington for concrete action," Padilla said, referring to the need to lobby Washington for change on Chapter 9.
The governor compared the island's financial situation to Detroit's, but unlike Detroit, Puerto Rico's only option is to settle its debt with its creditors on its own, which would take years.
Do you guys think Greece have the upper hand in this negotiation?. or Puerto Rico for that matter.
The last time someone did this was in the 80's when Argentina told the creditors (fuc.k y'all we aint paying!).
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