Finance

The IMF announced on Thursday that it would not extend a June 30 date for cash-strapped Greece to repay it 1.7 bln dollars, with a spokesman also saying the country would be in arrears to the Fund.

The first documented case of Greek default was in the 4th century BC. Even in modern times, Greece has spent 90 out of its 196 years in financial crisis… let’s not forget that “chaos” is a Greek word.

4th century BC – 13 Greek city states borrowed from the Temple of Delos but most of the borrowers never made good on their loans and the temple suffered an 80% loss.

Credit rating agency Standard and Poor's has warned of a possible downgrade of Bulgaria, Macedonia, Albania, Romania, and Serbia if the Greek crisis affects the banking systems of these countries.

According to S&P, a Greek exit from the eurozone would make Greek lenders bankrupt, triggering a domino effect on their subsidiaries.

Noted French economist Thomas Picketty this week reiterated his proposal for a major European summit to deal with European debt issue, while stressing that such a venue should aim for a significant “haircut” of Europe’s total debt.

Moreover, Picketty sharply criticized Berlin’s handling of the Greek issue.

Treasuries? 10-year notes are trading in the narrowest range this month as traders grow weary from seemingly nonstop negotiations between Greece and its creditors.

French Finance Minister Michel Sapin said Wednesday the sustainability of Greece's overall debt load should be discussed within current bailout talks aimed at avoiding the immediate threat of a Greek default.

The Australian government on June 24 said it would contribute A$930 million ($718.9 million) over five years to the new China-led Asian Infrastructure Investment Bank (AIIB), making it the  institution's sixth largest shareholder. 

Greek Prime Minister Alexis Tsipras has shown himself to be anything but a predictable negotiator.

After agreeing to yield measures worth 8 bln euros, the government has set up a minefield of VAT increases. VAT increases to food items are particularly tricky with hidden details aimed at yielding 2 bln euros in 15 months!

Here are the government’s hidden tax shocks:

– 45% hike to VAT at Aegean islands

By Roula Salourou

A series of measures that could burden the state budget by more than 300 million euros per year are included in a bill that the Labor Ministry tabled on Monday in Parliament.