Greek coalition braces for debt showdown as Germany rattles sabre

455-14223032111505458860Markets have yet to grasp that the rift between EU creditors and Greece’s firebrand premier Alexis Tspiras is ‘so large as to be unbridgeable’, warns Nomura.The new Greece of Alexis Tsipras will run out of money by early March. It will then face a series of escalating crunch points that will end in default and a return to the drachma unless it can reach a deal with EU creditors.
Greece must repay €3.4bn to the International Monetary Fund in February and March. Tax revenues have collapsed as Greeks preempt what they hope will be a repeal of austerity taxes. “There is only €1.9bn left in the cash kitty, and the government has spending costs of $2.5bn coming up. Somebody needs to lend the country money soon,” said Megan Greene, from Manulife Asset Management.Read Full Article

Categories: Europe, Global Economy - Markets - Finance, Greece

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