It is not time for the default in Greece yet. Athens intends to pay in full the 436 million euros in sovereign bonds due this Tuesday. This was reported by a source close to the government cited by several news agencies. Therefore the risk of default, which would have triggered in the event that Greece decides not to repay the bonds, has escaped for now. Now the problems will spill over into the country which, having limited liquidity available (1,9 billion euros in all), risks having to tighten its belts on pensions and public salaries.
The decision may have been influenced by the Eurogroup, although the source said it was "first and foremost Greek". Yet in March, after the agreement with private creditors, the former finance minister, now leader of the socialist Pasok party, Evangelos Venizelos, said that the bonds of those who did not join the exchange would not be reimbursed.
La next deadline of this type is the September 13th, when bonds for 184 million euros will mature.
As for the vacuum at the top of Hellenic politics the leaders of the three main parties (New Democracy, Syriza and Pasok) they will reunite again this tuesday with the President of the Republic Karolos Papoulias, to discuss the possibility of technical government, given the failure of the attempt to form a government of broad understandings. "We have no other choice," said socialist leader Evangelos Venizelos. The alternative would be to call new elections, on a possible date between 10 and 17 June.
Also this morning the Greek Treasury has placed 1,3 billion euros of 3-month government bonds. I returns they scored a jump 14 basis points compared to the previous April auction, al 4,34% from the previous 4,20%. Meanwhile, the Hellenic Institute of Statistics has released data on Greece's GDP. Athens continues in a deep recession: the Greek economy recorded -6,2% in the first quarter. The figure is better than the -7,5% of the first three months of 2011, but remains the lowest among the countries of the European Union.
