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The Troika is set to blink and approve the next €31B tranche of Greece's bailout despite...

The Troika is set to blink and approve the next €31B tranche of Greece's bailout despite the country being behind on its budget and reform targets, two German magazines have reported. Greece needs the cash to avoid bankruptcy and exiting the eurozone, a scenario that the bloc fears would lead to a domino effect. The troika was due to arrive in Athens today for more talks.
Comments (8)
  • Eighthman
    , contributor
    Comments (213) | Send Message
     
    So, there are no standards in this, right? No hard goals to be met by Greece ? They fail and fail and fail but get the cash anyway.
    30 Sep 2012, 09:30 AM Reply Like
  • Teutonic Knight
    , contributor
    Comments (2020) | Send Message
     
    I don't think the Greek people ever see much of the tranche. Much of the money hardly lands on Greek soil and would then swiftly embark on a round trip back to the Troika's pocket. In accountant's speak, the lender is just releasing more loans to pay itself the minimum interest due - - in other words, a bookkeeping process.

     

    What is the lien or collateral? Anyone knows? Please?
    30 Sep 2012, 11:02 AM Reply Like
  • Herr Hansa
    , contributor
    Comments (3080) | Send Message
     
    Need to watch Finland for an idea of collateral. That was the only county demanding collateral on the last tranche. So far nothing specific has emerged, though FT Alphaville continue to dig into this.
    30 Sep 2012, 02:31 PM Reply Like
  • untrusting investor
    , contributor
    Comments (9928) | Send Message
     
    TK,
    Exactly correct. The vast majority of any bailout money simply is recycled back to the EU to repay previous Greek loans. Hardly any of the bailout money actually enters into the Greek economy. Effectively it just increases the overall Greek debt replacing old debt with newer debt plus interest.
    30 Sep 2012, 02:51 PM Reply Like
  • robgra
    , contributor
    Comments (361) | Send Message
     
    Don't worry, once Greece has bled the rest of the EMU into collapse, they'll finally leave the EMU...
    30 Sep 2012, 09:54 AM Reply Like
  • American in Paris
    , contributor
    Comments (5504) | Send Message
     
    Greece will be cut loose at some point, but do it in the middle of a recession engulfing Europe and a Chinese slowdown would be stupid.
    30 Sep 2012, 02:57 PM Reply Like
  • winningtrader
    , contributor
    Comments (2476) | Send Message
     
    Greece is likely to leave the EUR. This is likely to happen after the US elections because Obama has asked Europe to delay any problems till after the US elections. So, the Europeans and IMF will pay this tranche of the money but then things will get ugly after November.
    The fact that Obama has asked the Troika to delay any tough decisions was leaked by European politicians.
    30 Sep 2012, 05:50 PM Reply Like
  • ByloSelhi
    , contributor
    Comments (177) | Send Message
     
    Hi winningtrader. Have you got a link to the report about Obama asking European leaders to delay actions? I would like to read that (those) reports and investigate the sources. Thanks.
    30 Sep 2012, 11:24 PM Reply Like
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