Greece to Default on IMF in May, June if No Deal Reached !

• Greece to Default on IMF in May, June if No Deal Reached !
  by Mike Shedlock, http://globaleconomicanalysis.blogspot.com/
  Greece is threatening to withhold payments to the IMF in May and June. This time it does not sound like a bluff. And if it’s not a bluff, we will finally know precisely when midnight occurs.
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  The Financial Times reports Greece prepares for Debt Default if Talks with Creditors Fail.
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  Greece is preparing to take the dramatic step of declaring a debt default unless it can reach a deal with its international creditors by the end of April, according to people briefed on the radical leftist government’s thinking.
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  The government, which is rapidly running out of funds to pay public sector salaries and state pensions, has decided to withhold €2.5bn of payments due to the International Monetary Fund in May and June if no agreement is struck, they said.
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  “We have come to the end of the road . . . If the Europeans won’t release bailout cash, there is no alternative [to a default],” one government official said.
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  Default is a prospect for which other European governments, irritated at what they see as the unprofessional negotiating tactics and confrontational rhetoric of the Greek government, have also begun to make contingency plans.
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  In the short term, a default would almost certainly lead to the suspension of emergency European Central Bank liquidity assistance for the Greek financial sector, the closure of Greek banks, capital controls and wider economic instability.
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