Greece default in two weeks


Alexis Tsipras, bailout, debt obligation, ECB, Greece, Grefault, IMF

Time is running out for Greece, the indebted country is nearing a highly probable default. Especially, Greece is still sidetracked in the talks with its international creditors for the issuance of a €7.2 billion bailout installment. Along with this matter, the leftist government of Greece is losing political support externally, but also internally. As some of its ministers are admitting that the indebted country won’t be able to pay off the upcoming IMF repayment, whereas the opposition politicians are fearing for capital controls.

Last week, Greece’s ministers and representatives have publicly stated that the indebted country does not have the means to pay off the debt obligation to the IMF on the 5th of June. Together with the additional three payments that need to be paid in the two weeks thereafter, it is a question of time when Greece will default. In attempt to save the day, Greece’s Prime Minister Alexis Tsipras pleaded the US Treasury Secretary for help in negotiating a pause in the payments, until a deal with the country’s creditors is reached. However, little luck is on their side, as the IMF is not easily forsaken.

Currently, the most urging cases to handle off are the major concessions on the labour market and pensions concerns. Evidently, these are the worrisome issues that prevent Greece to strike a deal with its creditors. As neither side back down on their demands, it will be troublesome for the indebted country. Hence marking a highly possible Greece default in two weeks from now.

Political and public support drops

Relating back to the diminishing political support of the Greece’s leftist government, two stern developments took place over the last week affecting the support. First off, there was a substantial drop in the public support for the negotiation strategy of Prime Minster Alexis Tsipras. As reported by Global Times, the University of Macedonia revealed that solely 35 percent of the Greeks believe in the strategy of the leftist government, which was polled between the 13th till the 15th of May.

Secondly, there have been internal disagreements indicating that the left platform grouping is considering to leave the Euro, while seeing an immediate stop on austerity. Over the weekend Prime Minister Alexis Tsipras barely managed to solve an internal dispute from his own party.

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