Date:30615

DAILY
NEWS

WORLD
EXCLUSIVES

Greeces
government

Greece
s rejects
creditor
pleas to
change

Greeces government entered its final day in an EU

bailout defiantly rejecting eleventh-hour pleas from
its eurozone creditors to change course.
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The IMF
default

European equity
markets

- Since 2015

The IMF default, which will make

Athens the first developed country
ever to go into arrears with the
fund, is not expected to have a
direct impact on Greeces status in
the eurozone; credit rating
agencies and EU bailout lenders
have signalled they will not
consider non-payment a credit
event that triggers other defaults
a move that would bankrupt
Athens immediately. It is now on a
path that will lead to it defaulting
on a 1.6bn loan repayment to the

Date today 30-6-15

Breking
news

NEWS

Mr Juncker held out the possibility of

debt relief if Mr Tsipras agreed to the
offers terms and campaigned for a
yes vote in Sundays referendum.

But the expiry of the bailout at midnight in

Brussels is likely to force the European Central
Bank to reconsider its emergency lending to
Greek banks, which is the only lifeline keeping
the financial system from collapsing.
Although the ECB is unlikely to cut off lending
completely, it could require banks to post more
collateral to get the emergency loans. Some
officials worry that at least one of Greeces four
systemic banks would not have enough
collateral to survive if the ECB decided to agree
to a haircut.The exit of Greece from the euro
area, which used to be a theoretical question, can
unfortunately no longer be ruled out, Benoit Coeur,
the ECB board member responsible for Greek issues,
said in an interview published on Tuesday in the
French financial daily Les Echos.
According to EU diplomats, Jean-Claude Juncker, the
European Commission president, on Monday night
made a last-ditch effort to convince Alexis Tsipras, the
Greek prime minister, to change course, calling the
Greek prime minister to ask him to accept a final offer
The referendum
is taking
place normally,
published
by the commission
on Sunday.

said the official, though he cautioned

Athens may make its own proposal later
on Tuesday. But the debt restructuring
offer would only be along the lines of a
previous November 2012 agreement that
Mr Tsipras has repeatedly said was
inadequate..

European equity
markets

In our view, the Greek governments decision to hold a national referendum on official
creditors loan proposals indicates that Prime Minister Alexis Tsipras will prioritise
domestic politics over the countrys financial and economic stability, commercial debt
service, and membership of the eurozone, S&P wrote.
Haris Theoharis, a former secretary-general in charge of revenue collection, told the
Greek parliament Tuesday morning that a team of officials from the finance ministry was
preparing an emergency plan for Greece to readopt the drachma.
Mr Theoharis said officials from the governments general accounting office, which
handles the national accounts, were working on the plan at the prime ministers office.
A government spokesman immediately denied that such a team existed.
Mr Theoharis was sacked last year by the centre-right government after encouraging a
Greek oligarch to pay back taxes worth several hundred euros, on grounds he had made
a mistake. He is now an MP with the small centre-left To Potami party.
Use of templates European equity markets, which opened calmer than on Monday,
cautiously welcomed the media reports despite the expectation of the IMF default. The
FTSE Eurofirst 300, which was down 1.67 per cent, is down 0.63 per cent while Italian
and Spanish government bond yields are now lower on the day, reflecting a burst of
strength in prices.
Mariano Rajoy, Spains prime minister, on Tuesday joined fellow eurozone leaders by
issuing a blunt warning to Greek voters that a no vote will force the country to leave
the eurozone.
He also argued that it would be good for Greece if Mr Tsipras, who is backing a no

Made
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a Mistake
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Mistake

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