All kinds o BS from the delapidators in Brusells...

Greece is close to reaching a deal with its creditors to secure a €86bn lifeline that will keep it afloat for the next three years and secure its place within the eurozone, according to the country's prime minister.   As shares in Greece's benchmark index continued to plummet, Alexis Tsipras said meetings between the government and Greece's creditors had made good progress.

"We are in the final stretch," said Mr Tsipras. "Despite the difficulties we are facing we hope this agreement can end uncertainty on the future of Greece."   Greek bank shares plunged for a third day on Wednesday, after the end of a five-week shutdown sparked the biggest stock market drop on record.  The Athens stock exchange closed down 2.44pc at 643.86 on Wednesday, after falling by as much as 4.4pc, while an index of the country's top four banks fell 25pc to 246.50.

Bank shares have now fallen close to the maximum 30pc allowed for three straight days.

 

Point 1: discussion of debt relief is a red herring. At the primary level - ie: before ANY debt service is accounted for - Greece is very negative: tax collection 25% below budget, no state suppliers have been paid since 7th March, GDP falling rapidly. Until the basic economy is managed properly, any debt service is academic.

Point 2: the banks are very bust. 55% of their 'capital' is Deferred Tax Assets - which everybody knows is phoney capital: it only has value if their future is profitable, no value on a winding up. Non-performing loans are declared at 50% but in reality are much worse. Banks are deliberately refinancing dead loans in order to make them appear 'performing'. The market knows this: the four bank shares were suspended 30% 'limit down' on Monday, Tuesday and two of the four are already suspended again today (Eurobank and NBG managing to remain above suspension so far Wednesday by way of two token €2m buy orders).

There really needs to be a bankruptcy process for a country, like Chapter 11 for corporations. Bailout 3 (if it happens - which I doubt) will simply pour more money down the drain, failing to address the above issues thoroughly.