Defiant Greeks reject EU demands as Syriza readies IOU currency: there is so much bad blood after months of insults, frustration and failure, there is little faith

Tsipras Tries to Rally Greek Support for Bailout Proposal By LIZ ALDERMAN and ANDREW HIGGINSJULY 10, 2015 Photo Euclid Tsakalotos, the Greek finance minister, on Friday at a meeting of the Syriza party, which was said to be tense because of serious objections among legislators over the additional austerity measures that are laid out in the proposals. Credit Alkis Konstantinidis/Reuters ATHENS — Prime Minister Alexis Tsipras began the apparently delicate task Friday of selling his anti-austerity party and the rest of the Greek Parliament on a three-year rescue package that was remarkably similar to the one Greek voters overwhelmingly rejected in a referendum less than a week ago. Yet, with a Sunday deadline looming for a decision on the bailout, a crunch point that all sides see as Greece’s last chance to avoid bankruptcy and stay in the euro, Mr. Tsipras’s government coalition appeared set to approve the proposal. Far-left lawmakers who had originally sought to scuttle the bailout signaled their support, while a handful of coalition members said they would vote no. Parliamentary approval in Greece would set the stage Saturday for a possible approval by European countries of a deal that would allow negotiations to go forward on a comprehensive bailout package. Pensioners wait outside of a National Bank of Greece branch in Athens on Thursday. Greek Plan Accepts Austerity to Get Debt Relief JULY 9, 2015 The chief operating officer of the Greek jeweler Zolotas said he recently turned down a customer who wanted to buy more than a million dollars' worth of jewels. Greeks Spend in Droves, Afraid of Losing Savings to a Bailout JULY 8, 2015 Open Source: Tourists on Greek Island Join Local Volunteers to Aid Refugees JULY 7, 2015 Lawmakers took up the measure after a whiplash-inducing 24 hours in which Mr. Tsipras decided to give in to most of the demands of Greece’s creditors. In exchange, he won the opportunity to negotiate for $59 billion in new bailout money, on top of about $270 billion Greece has received since 2010, and potential negotiations to reduce the repayment terms on the debt. His capitulation also potentially allowed Greece to avoid a catastrophic exit from the euro. Easing Greece’s Payback Terms Is One of the Issues Under Debate 4h Are Germany and the I.M.F. Still on the Same Page on Greece? 4h Finance Minister Makes Case for Government’s Plan to Greek Parliament Even as a vote neared in the Greek Parliament, influential voices in Germany and Eastern Europe expressed skepticism throughout the day about whether Greece would follow through on pledges to be more fiscally responsible. And a crowd of people gathered outside the Parliament building in Athens Friday evening to protest Mr. Tsipras’s abrupt U-turn, with many saying they felt betrayed after he urged them to reject the bailout in the historic referendum last Sunday. One of the demonstrators, John Papageorgiou, 45, a teacher of mathematics to teenagers with special needs, said he would have liked for Greece to drop the euro currency, because he believed the euro advantaged certain countries, like Germany, while disadvantaging others, like Greece. Nonetheless, he said, he did not feel betrayed by Mr. Tsipras’s compromise efforts, and said he believed that the European leaders would recognize that Greece’s debt was illegal. His friend, Maria Antonopoulou, 44, who works for a public electric company, interjected, “We love Tsipras. We needed him as Greeks. We have faith in him. Compared to what we had, he’s clean.” Greek Prime Minister Alexis Tsipras at a session held Friday by the Syriza party, which he is a member of. Credit Jean-Paul Pelissier/Reuters Mr. Tsipras said that he would resign if he lost the vote in Parliament, which requires the support of 151 lawmakers to pass. Yanis Varoufakis, the former finance minister whom Mr. Tsipras asked to resign Monday, said on Twitter that he would not participate because of “family reasons.” Greek television broadcast images of him and his wife on Friday taking a ferry and their red Mini Cooper to their vacation home on the Greek island of Aegina. The new proposals were given a swift thumbs-up by France and lifted hopes in Brussels that, after months of ill-tempered arguments and fruitless crisis meetings, Greece and its creditors could reach a deal by midnight on Sunday to prevent a fracturing of Europe’s currency union. The goal is not to seal an agreement that would immediately provide Greece with fresh funding, but simply to get a formal green light to start what could be lengthy negotiations on a new bailout to replace one that expired on June 30. Just the signal to start talks, though, could lift, at least temporarily, a dark cloud of uncertainty and give the European Central Bank cover to perhaps expand recently frozen emergency cash for Greek banks, which have been closed since June 29. What Leaders Are Saying About the Greek Proposal European leaders weighed the latest measures from Athens. A final agreement is still far from a sure thing. A raft of actors — 19 eurozone finance ministers, 28 European Union leaders, who have been called to Brussels to discuss the crisis on Sunday and the various bureaucracies in Brussels — need to examine the proposal in detail before giving their approval. And there is so much bad blood after months of insults, frustration and failure, there is little faith in European circles in Greece’s pledges to carry out a raft of measures like tax increases and cuts in pension spending. Representatives of the main creditors — the International Monetary Fund, the European Central Bank and the other European nations that use the euro — were poring over the Greek proposal on Friday. Their assessments will play a critical role in any decisions by the Eurogroup, an assembly of finance ministers from euro-using countries, which is scheduled to meet in Brussels on Saturday. Even Mr. Tsipras’s party, Syriza, which drafted the proposals with help from French experts, seemed confused, with members voicing concern over measures that the culture minister, Nikos Xydakis, described on Friday as “very tough.” Many lawmakers from Syriza, an argumentative coalition of left-wing groups, had serious misgivings about the proposal, but as the discussions continued Friday seemed to agree in essence with Is Greece Worse Off Than the U.S. During the Great Depression? The economy has been in disarray. People have been out of work for years. The banks have been running out of money. It sounds a lot like the Great Depression in the United States. But it is Greece – and in some ways, the situation is worse. Mr. Xydakis said in an interview: “No, it’s not a better deal. It’s a tough deal and the only one we can get right now.” Euclid Tsakalotos, the new finance minister, defended the government’s proposal to creditors on Friday, telling the Greek Parliament that the plan reflected an earlier joint statement by party leaders that called for debt relief and emergency funding in return for “credible measures.” Arriving for the session on Friday morning, a visibly rattled Panagiotis Lafazanis, the energy minister who leads Syriza’s radical Left Platform faction and has railed against further austerity, refused to answer reporters’ questions. Mr. Xydakis, complained that Greece faced an “intransigent Germany,” adding: “We will have to see how we will survive in this very tough framework.” Greece’s Debt Crisis Explained The latest on Greece’s evolving nightmare. Speaking to members of Syriza in the parliament building on Friday, Mr. Tsipras said his government has a “mandate from the Greek people to bring a better agreement” but “we do not have a mandate to take the country out of the eurozone,” an event that would follow a decisive rupture with creditors. Mr. Tsipras, who last week vowed never to succumb to creditors’ terms he condemned as the work of “extreme conservative forces,” seems to have calculated that it was worth making concessions in order to secure the proposed three-year $59 billion bailout loan and the possibility of negotiating easier terms for repayment of the nation’s massive debt. When Syriza began negotiations with creditors after it came to power in January, the objective was a more modest unblocking of about $8 billion from an existing bailout program that has since expired. “It is largely a capitulation on Tsipras’s part to what creditors have been asking for, but is that enough?” asked Raoul Ruparel, co-director of Open Europe, a research group in London. “Germany and some others are very skeptical about anything the Greeks produce, and this goes back to the main problem — a total lack of trust.” Yanis Varoufakis, a member of the Greek Parliament, before the meeting. Credit Thanassis Stavrakis/Associated Press Recent Comments illampu 2 minutes ago Lppk at Euclid Tsakalotos, how he explains the Greece position to the EU paliament:"Either you work like us or you work for us." Thomas Renner 20 minutes ago They sound nuts. How could anyone with a sound mind lend them money. On Sunday they voted not to except these terms. On Friday they are... illampu 20 minutes ago The French writer and diplomate Edmond About wrote already in 1858 that Greece is a failed and bankrupt country and would be a nightmare for... While President François Hollande of France welcomed the new Greek proposals as “serious” and “credible,” Chancellor Angela Merkel of Germany and her key ministers kept silent early Friday, insisting that it was too soon to judge the suggestions now being reviewed by the European Commission, the European Central Bank and the I.M.F. “We will wait until the institutions examine them and express their opinion,” said Steffen Seibert, a spokesman for the German government. But he reiterated Germany’s longstanding insistence that all 19 countries that use the euro must follow the rules, a position that has made Berlin resistant in the past to pleas from Greece that demands for tight budgets must be relaxed and debts restructured to prevent the country from suffocating. Martin Jäger, spokesman for Germany’s hard-line finance minister, Wolfgang Schäuble, said that the outcome of the Saturday gathering remains “completely open.” Both Mr. Schäuble and his boss, Ms. Merkel, have ruled out writing off any of Greece’s debt under what Ms. Merkel has called “a classical haircut,” or debt writedown, but they have indicated they might be open to further extending payment deadlines and reducing interest rates. Some of Ms. Merkel’s political allies and the governments of eastern and central European countries that have taken an even tougher line on Athens than Germany raised doubts Friday about Greece’s readiness and ability to deliver on its new promises, delivered late Thursday just before a midnight deadline fixed by creditors expired. Hans-Peter Friedrich, a member of the Christian Social Union, which is part of Ms. Merkel’s conservative bloc, expressed skepticism, noting the similarities between the new Greek proposal and the one rejected by the Greek people. Continue reading the main story 17 Comments “That means there are two possibilities, either the Greek government is tricking its own people, or us yet again,” Mr. Friedrich told Deutschlandfunk radio early Friday. But he said he had not yet seen the full Greek proposal and suggested he could be swayed. “We will see what the experts have to say,” Mr. Friedrich said. “And we will ask critical questions.” Also doubtful was Peter Kazimir, the finance minister of Slovakia, one of the countries that use the euro and whose previous government fell in 2011 over whether to support an earlier bailout deal with Greece. On his Twitter account on Friday, Mr. Kazimir said “it seems we have progress” on Greece but added: “One can only wonder how quickly a caterpillar can turn into a butterfly.” Liz Alderman reported from Greece and Andrew Higgins from Brussels. .James Kanter contributed reporting from Brussels, Niki Kitsantonis and Suzanne Daley from Athens, Alison Smale from Berlin and Rick Lyman from Warsaw. ============================ By Colin Freeman, Athens and Peter Dominiczak, Political Editor10:00PM BST 05 Jul 2015 The European Union is facing its worst crisis since the formation of the euro after Greece voted decisively against accepting the terms of its eurozone bail-out deal. Early results suggested that around 61 per cent of Greeks had voted to reject the deal, compared to just 39 per cent in favour, despite opinion polls saying right until the eve of polling that the result was too close to call. • Time to face reality: Greece needs mass debt relief now • Referendum gallery The scale of the No vote took European leaders by surprise, and led to panic in the financial markets. German Chancellor Angela Merkel spoke to Alexis Tsipras, the Greek prime minister, and is due to meet the French President, Francois Hollande. EU leaders have said that a “No” vote would see Greece crash out of the eurozone, dealing a sharp blow to Brussels' blueprints for closer European political and financial integration. The vote was hailed as a huge symbolic victory by backers of Greece's ruling Syriza party, whose coalition of radical Leftists came to power in January on a promise to fight Brussels-imposed austerity measures. The move sent shockwaves across Europe with financial markets braced for their worst period of turmoil since the height of the eurozone crisis three years ago. The scale of the 'no' vote became apparent early on David Cameron and George Osborne, the Chancellor, will hold an emergency meeting to discuss how to deal with the Greek crisis and ensure that Britain's economic recovery is not adversely affected. The Prime Minister is on Tuesday expected to attend a summit meeting of EU leaders in Brussels as they discuss how to prevent Greece's possible exit from the eurozone causing economic turmoil across the continent. • EU warns of Armageddon if Greek voters reject terms The Chancellor and Prime Minister have in recent weeks been holding regular meetings to discuss contingency plans in the event that Greece leaves the eurozone. Officials have been discussing measures to ensure that British ex-patriates in Greece, thousands of whom are pensioners, as well as UK tourists are protected. Mr Osborne has also repeatedly warned that the British economy will be hit if Greece leaves the eurozone. Unfortunately, Greece has chosen a path of isolation Hans Michelbach, political ally of Anglea Merkel Senior figures in the Government believe that it could strengthen Britain's negotiating hand ahead of the in-out referendum because the EU will be reluctant to risk losing another member if Greece leaves the bloc. However, there are fears that chaos in the EU if Greece leaves the eurozone could strengthen the hand of eurosceptics pushing for a British exit. In Athens, a festival atmosphere prevailed in front of the parliament in Syntagma Square following the result, with "No" campaigners blowing whistles and waving flags. • German TV crew pelted with 'fist-sized stones' by demonstrators in Greece EU leaders have already made it clear that a "No" vote would be interpreted not as a mandate for better bail-out conditions, but a message that Greece no longer wanted to be part of the eurozone. The country's banks, which are almost empty already, will collapse imminently unless the European Central Bank agrees to extend an emergency financial lifeline. Despite the possibly ruinous consequences of the vote, crowds celebrated on the streets Many ECB officials are reluctant to do so, given that the country is now effectively insolvent. But there are fears of empty shop shelves and hospitals running out of medical supplies if they do not. One Greek official warned of a "humanitarian disaster" if Greece's financial system was set adrift. The country's banks were shut all last week to prevent a run on the country's currency, and are due to reopen on Tuesday. Syriza officials are due to arrive in Brussels for what are likely to tense emergency talks with Eurozone finance ministers, who were infuriated by the party's decision to stage the referendum. • 'Buy this fund when Greece is no longer in the headlines’ While the Greek finance minister, Yanis Varoufakis, said that a deal could be hammered out within 24 hours, EU officials said that prospects of a new deal were far from clear. Several of Greece's creditor nations must also get any new bail-out agreement ratified by their parliaments, which may take a dim view of yet more taxpayer's cash being diverted to Athens. "Now one has to ask the question whether Greece would not be better off outside the euro zone," said Hans Michelbach, a German politician allied to the Chancellor, Angela Merkel. "Unfortunately, Greece has chosen a path of isolation." He said the "No" vote provided no further justification for an easing of Greece's bail-out conditions, a point backed by senior German business leaders last night. However, the Italian foreign minister, Paolo Gentiloni, appeared to argue for compromise. "Now it is right to start trying for an agreement again," he said. The landmark vote marked the culmination of the increasingly bitter five-year stand off between Greece and the demands of creditors in the eurozone and the IMF. Greece has decided emotionally, not logically. I am worried that our social fabric will disintegrate Greek political analyst Ioannis Michalatos It ended up being decisively resolved in just 12 hours flat, as voters from downtown Athens to remote Aegean islands returned a "No" verdict. For those Greeks who support the Left-wing Syriza government, the vote is a symbolic victory, even if does mean leaving the eurozone. For Yes voters, it is nothing short of disaster, dragging Greece into what they fear will be an even harsher economic wilderness than before.

German conservative says "Grexit" best solution for all

Greece's Varoufakis: Rather 'cut my arm off' than agree to current deal Published time: July 02, 2015 16:35 Get short URL Greek Finance Minister Yanis Varoufakis (Reuters / Marko Djurica) Bailout, Crisis, EU, Economy, Greece Greece’s Finance Minister Yanis Varoufakis has pledged to resign if Greeks voted ‘Yes’ in Sunday’s referendum on the country’s bailout. He also said he would “prefer to cut my arm off” rather than sign the current deal with Greece’s creditors. “Everybody in the government will do what we must do in order to respect the “Yes” vote of the Greek people, but there won’t be a “Yes” vote. I am quite confident that the Greek people have had enough of extending and pretending, like the rest of the world by the way,” Varoufakis said in an interview to Bloomberg on Thursday. People got tired of “losing their dignity by signing agreements and making pledges that simply cannot be met. Because the financing is wrong,” he said. Varoufakis said that if the ‘Yes’ vote succeeds, come Sunday midnight he won’t be finance minister anymore. “But I would help whoever it is,” he added. Varoufakis complained that the country’s debt was unsustainable, saying ‘I’d better cut my arm off’ than sign the deal with creditors that doesn’t include debt reorganization. ‘Desperate’ to stay in the euro Greece “really desperately wants to stay in the euro, even if we are critical of the institutions in the framework of the euro,” Varoufakis said. “The question for the Greek people is, how do you stay in it. Do you stay by further extending and pretending? I believe not. If we sign that agreement that was offered to us by these institutions, in 6-12 months we'll be even closer to insolvency,” he said. “I won’t sign another extension and pretend. I’m allergic to extending and pretending.” The group of eurozone finance ministers has agreed that the debt talks will be paused until after Greece holds a referendum on whether or not Athens should agree to the international creditors’ conditions. Mr. Varoufakis said the talks would resume with European creditors even if the result on Sunday was a 'No' vote. “What we do with this economy and whether we extend the crisis by pretending to have solved it will depend on the outcome of the referendum,” he said. In the case of a 'No' vote, the Greek government would “immediately start negotiations,” Varoufakis promised. “Believe you me, there will be an agreement,” he said. Greek PM: We aim to seal deal with creditors after referendum Greek Prime Minister Alexis Tsipras also says that a “'No' answer in the referendum would be an important step to getting a better deal – it does not mean a break-up with Europe." "I fully understand the difficulties, and I will do everything in my power so that they are temporary. Those who say the government has a plan to exit Europe are lying," he added. Tsipras said his government was facing the consequences of a fight for decent welfare: "The predominance of extreme views in Europe has led to the closure of Greek banks, to scare the ordinary Greek citizen. To protect the right of our pensioners for a decent pension, we have been fighting for five months, and now, we are facing retribution for it." ‘No banking crisis in Greece’ When asked whether the Greek banks would open next Tuesday as normal, Varoufakis said “absolutely.” “It's not a banking crisis according to the ECB and SSM the banks were perfectly capitalized there was no problem with them. What is happening is there has been a political decision to shut the banks down as a way of effectively pushing us to accept a nonviable agreement at the political level. So this is a political crisis, but nothing to do with the banks. Once the political crisis is over after the Greek people deliver their verdict, the banks will open,” he said. Meanwhile, Greeks have been queuing to withdraw money from ATMs after the government said that banks would remain closed for a week starting from Monday. Restrictions on withdrawals have been introduced following the ECB refusal to provide additional Emergency Liquidity Assistance to Greece’s banking system. ========= Joseph Stiglitz: how I would vote in the Greek referendum Neither alternative – approval or rejection of the troika’s terms – will be easy, and both carry huge risks Alexis Tsipras, leader of the radical left main opposition party Syriza, greets supporters after a rally of the party in the northern Greek port city of Thessaloniki, January 2015. Photograph: Sotiris Barbarousis/Sotiris Barbarousis/epa/Corbis Tuesday 30 June 2015 02.02 AEST Last modified on Tuesday 30 June 2015 23.29 AEST The rising crescendo of bickering and acrimony within Europe might seem to outsiders to be the inevitable result of the bitter endgame playing out between Greece and its creditors. In fact, European leaders are finally beginning to reveal the true nature of the ongoing debt dispute, and the answer is not pleasant: it is about power and democracy much more than money and economics. Of course, the economics behind the programme that the “troika” (the European Commission, the European Central Bank, and the International Monetary Fund) foisted on Greece five years ago has been abysmal, resulting in a 25% decline in the country’s GDP. I can think of no depression, ever, that has been so deliberate and had such catastrophic consequences: Greece’s rate of youth unemployment, for example, now exceeds 60%. It is startling that the troika has refused to accept responsibility for any of this or admit how bad its forecasts and models have been. But what is even more surprising is that Europe’s leaders have not even learned. The troika is still demanding that Greece achieve a primary budget surplus (excluding interest payments) of 3.5% of GDP by 2018. Greece debt crisis: Athens fails to repay IMF as bailout runs out - as it happened Greece has become the first advanced economy to fall in arrears to the IMF as its second bailout expires Economists around the world have condemned that target as punitive, because aiming for it will inevitably result in a deeper downturn. Indeed, even if Greece’s debt is restructured beyond anything imaginable, the country will remain in depression if voters there commit to the troika’s target in the snap referendum to be held this weekend. In terms of transforming a large primary deficit into a surplus, few countries have accomplished anything like what the Greeks have achieved in the last five years. And, though the cost in terms of human suffering has been extremely high, the Greek government’s recent proposals went a long way toward meeting its creditors’ demands. We should be clear: almost none of the huge amount of money loaned to Greece has actually gone there. It has gone to pay out private-sector creditors – including German and French banks. Greece has gotten but a pittance, but it has paid a high price to preserve these countries’ banking systems. The IMF and the other “official” creditors do not need the money that is being demanded. Under a business-as-usual scenario, the money received would most likely just be lent out again to Greece. But, again, it’s not about the money. It’s about using “deadlines” to force Greece to knuckle under, and to accept the unacceptable – not only austerity measures, but other regressive and punitive policies. But why would Europe do this? Why are European Union leaders resisting the referendum and refusing even to extend by a few days the June 30 deadline for Greece’s next payment to the IMF? Isn’t Europe all about democracy? In January, Greece’s citizens voted for a government committed to ending austerity. If the government were simply fulfilling its campaign promises, it would already have rejected the proposal. But it wanted to give Greeks a chance to weigh in on this issue, so critical for their country’s future wellbeing. That concern for popular legitimacy is incompatible with the politics of the eurozone, which was never a very democratic project. Most of its members’ governments did not seek their people’s approval to turn over their monetary sovereignty to the ECB. When Sweden’s did, Swedes said no. They understood that unemployment would rise if the country’s monetary policy were set by a central bank that focused single-mindedly on inflation (and also that there would be insufficient attention to financial stability). The economy would suffer, because the economic model underlying the eurozone was predicated on power relationships that disadvantaged workers. Greek debt crisis: protests as EC urges yes vote in referendum – as it happened Governments of France, Germany and Italy all warn that Greeks are voting on their eurozone membership on Sunday, as banks remain shut And, sure enough, what we are seeing now, 16 years after the eurozone institutionalised those relationships, is the antithesis of democracy: many European leaders want to see the end of prime minister Alexis Tsipras’ leftist government. After all, it is extremely inconvenient to have in Greece a government that is so opposed to the types of policies that have done so much to increase inequality in so many advanced countries, and that is so committed to curbing the unbridled power of wealth. They seem to believe that they can eventually bring down the Greek government by bullying it into accepting an agreement that contravenes its mandate. It is hard to advise Greeks how to vote on 5 July. Neither alternative – approval or rejection of the troika’s terms – will be easy, and both carry huge risks. A yes vote would mean depression almost without end. Perhaps a depleted country – one that has sold off all of its assets, and whose bright young people have emigrated – might finally get debt forgiveness; perhaps, having shrivelled into a middle-income economy, Greece might finally be able to get assistance from the World Bank. All of this might happen in the next decade, or perhaps in the decade after that. By contrast, a no vote would at least open the possibility that Greece, with its strong democratic tradition, might grasp its destiny in its own hands. Greeks might gain the opportunity to shape a future that, though perhaps not as prosperous as the past, is far more hopeful than the unconscionable torture of the present. I know how I would vote. Joseph E. Stiglitz, a Nobel laureate in economics, is University Professor at Columbia University. His most recent book, co-authored with Bruce Greenwald, is Creating a Learning Society: A New Approach to Growth, Development, and Social Progress. Copyright: Project Syndicate, 2015. Tanks in the streets! Martial law! What has #qanda done!? | First Dog on the Moon Girls who have sex are like tape that loses its stickiness. Seriously? | Van Badham Phil Walsh: son charged with murder of Adelaide Crows coach Melbourne church CityLife apologises for warning students not to hug Phil Walsh: an old-school coach, lifted by grit and inspired by the art of the game | Michael Safi ============== Greece crisis: Tsipras accepts troika bail out proposals with conditions Eurozone finance ministers are scheduled to discuss Tsipras’s latest proposals in a conference call at 5.30pm Brussels time Hazel Sheffield Wednesday 01 July 2015 Alexis Tsipras has said that Greece will accept all bailout conditions proposed by the country’s creditors with only a handful of minor changes. In a letter sent to the European Commission, the International Monetary Fund and the European Central Bank and seen by the Financial Times, Tsipras expands his idea for a new, third €29.1 billion rescue package. "The Hellenic Republic is prepared to accept this Staff Level Agreement subject to the following amendments, additions or clarifications," the letter read. Greece will accept all the VAT proposals, Tsipras said, as long as there is a 30 per cent discount for Greek islands. The pension age will change to 67, Tsipras agreed, starting in October rather than immediately as the troika had proposed. He also asked that a ‘solidarity grant’ for poorer pensioners is phased out more slowly than the troika requested. Eurozone finance ministers are scheduled to discuss Tsipras’s latest proposals in a conference call at 5.30pm Brussels time. Markets reacted positively to the news. Vonnie Quinn ✔ ‎@VonnieQuinn Dax after FT report of Tspiras's letter to EC/ECB/IMF accepting conditions with minor changes for extension/bailout 3 ============ New Greek bailout bid mixes chutzpah with caution Athens wants a last-minute EU backstop loan to avoid a technical default if it doesn’t repay the IMF on Tuesday. Assuming the answer is no, it might convince Greeks to vote for euro exit. It could also serve as a signal to the ECB not to cut off emergency Greek bank loans. Greece makes IMF stooge in game-theory drama Athens probably won’t pay the IMF debt due on June 30. It’s a tactic - the Greek government can and will honour the debt eventually. But non-payment puts pressure on the euro zone to sweeten its deal – or to collapse Greek banks and accelerate euro exit. Corporate financiers put brave face on Greek crisis Dealmakers would be forgiven for putting almost any plan on ice, pending some sort of resolution of the Greek debt drama. The $18 billion Towers Watson-Willis merger and the IPO of market maker Flow Traders suggest that deals can still get done, even if it’s with gritted teeth.

Dealmakers would be forgiven for putting almost any plan on ice after Greece announced it would not pay debt due on June 30. Yet the $18 billion merger of Towers Watson and Willis, and the initial public offerings of market maker Flow Traders and Spanish cable telecoms operator Euskaltel, suggest that deals can still get done.

Some corporate actions are hard to curtail even in the trickiest times. In the case of a merger or takeover, the fear that price-sensitive news will leak gives a special incentive to press ahead. An IPO timetable is easier to extend. That said, sellers of stock in an IPO may conclude it is better to crack on than risk finding worse circumstances later.

Urgency varies. Companies in less need may fare better with investors. Flow Traders, for instance, isn’t raising new capital but giving existing owners an exit. A company desperate to refinance debt, on the other hand, might have more reason to press on but hold less appeal for stock buyers. Meanwhile, the merger of reinsurer Willis and professional services company Towers Watson is an all-stock transaction, which makes the union less dependent on credit markets, where Greece’s debt drama is likely to have a disruptive impact.

Flow Traders also shows it is easier to keep the show on the road if there is a strong corporate story to tell. It provides liquidity to the managers of exchange-traded financial products, and reckons that the industry’s assets under management will increase 17 percent a year to $6 trillion by 2019. Its exposure to falling asset prices is limited since as a market maker, it facilities trading activity without taking on the risk of holding stock that is unhedged.

At the 29 to 37 euro per share price range outlined on June 30, Flow Traders expects to have a market capitalisation of between 1.35 and 1.72 billion euros. That equates to a reasonable 12 and 15 times projected forward earnings. Companies and corporate finance advisers willing to be realistic about pricing will find options remain open, regardless of wider market wobbles.

http://www.flowtraders.com/

Reuters: Insurance broker Willis Group to merge with Towers Watson

Reuters: Flow Traders announces indicative price range and offer size of planned IPO

Insurance broker Willis, and Towers Watson, the consultant, said on June 30 that they plan to merge to create an entity worth around $18 billion.

Flow Traders, a market maker specialising in exchange-traded financial products, said on the same day it would pursue previously announced plans for an initial public offering. Euskaltel, a Spanish fibre telecoms company, also went ahead with its public listing of shares.

Greece will not pay a 1.6 billion euro loan installment due to the International Monetary Fund on June 30, a Greek government official confirmed.

Greece closed its banks and imposed capital controls on June 28 after bailout talks with foreign lenders broke down and the European Central Bank froze funding support to Greece’s banks.

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