Hours after Greece had officially defaulted on its bailout loan from the International Monetary Fund; Eurozone ministers were already discussing terms of a new bailout loan to keep the country afloat.
Officials today will decide whether or not an emergency loan to Greece from the European Central Bank. The meeting where ECB ministers will decide as much is only the first of two meetings that are to happen this afternoon, the other being in regards to Greece’s request for a new bailout amounting in nearly 30 billion Euros and lasting two years.
Many expect a tidy end to a short-lived crisis to take place at the ECB today, with only the actual terms of the bailout agreement being settled, not the issue of whether or not a bailout will be extended. At this point, the question seems to be whether the ECB wants Greece to default on the IMF or whether Greece needs the Eurozone, depending on where you’re standing.
However, failing a tidy end, Greece has indicated that it is willing to accept creditor demands for the most part in exchange for continued credit at the IMF. One of the key items that Greece refuses to give way on is the 30% tax discount it extends to some of its islands, which seems to be a matter of internal politics more than anything. Greece is already intending to hold a massive vote on Sunday, but creditors have said this is not really a vote about meeting the demands of the creditors, but rather about whether or not Greece belongs in the Eurozone. By Wednesday, support for reneging on the debt seemed to be waning, dipping under 50%.
The extended effects of the IMF default have been quick to present themselves. The lack of the normal liquidity line from the IMF that Greek banks can utilize has led to a strict 60 Euro per day ATM withdrawal limit, and international banking is not currently working. Recent events have cost Greece yet another credit rating slash, going from CCC to CC, meaning they are just one step away from being in full default, at least according to Fitch, an international rating agency.
Greece is looking for any way out of this mess that doesn’t leave it bleeding. The country will have to find some way to pay its new loans, and that could mean hard decisions at a policy-making level.
Whether wealthier Greeks have been exiting into Bitcoin or not is currently not a debatable, since there is no real proof that increased buy pressure is coming from Greece. There have, however, been an increased number of mainstream mentions of Bitcoin, and these could be contributing to the increase in interest.
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