Greece is getting ready to default | Emergency Preparedness | Forums

wonder what impact this will have

Greece is getting ready to default on at least some of its debt payments, according to the Financial Times.

The country has entered a pretty dire fiscal situation. It desperately needs to unlock bailout funds from its creditors, but progress negotiating that cash is shaky at best.

If Athens doesn't get its next €7.2 billion ($7.58 billion) bailout tranche by the April 24 Eurogroup meeting of European finance ministers, default becomes a lot more likely, and it seems as if the government is already preparing for the worst. Here's the FT:

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.

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.

"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.

Quickly after the FT's story emerged, the Greek government denied that it was planning for a default. But given the country's financial situation, it would probably be careless if it was not at least looking at the scenario.

Read more: http://uk.businessinsider.com/report-greece-is-getting-ready-to-default-2015-4?r=US#ixzz3XLFiWtIY