Post originally appeared on Zerohedge.
But the short-term has plenty of major hurdles…
and the breakdown in 2015…
And Greece now has a bigger problem as The ECB has pulled the plug on its bond ponzi…instructing Greece’s biggest banks to refrain from increasing their exposure to Greek government debt, according to people familiar with the matter.
The ban on Greek banks increasing their exposure to the bills poses a severe challenge to Greece’s government, which faces several major debt repayments in early April. So far is has been able to repay maturing T-bills by selling new ones. But bids from foreign investors have been dwindling. If Greek banks can’t replace foreign investors, then the stock of outstanding T-bills will decline—and the government will need another source of cash to repay them.
Cash, however, is precisely what Athens is running short of. Another loan repayment to the IMF due April 9 is followed by two T-bill repayments in mid-April.
Athens officials insist they have enough money to survive through mid-April, but that it depends partly on how much tax revenue comes in. Greek officials say the government’s liquidity situation has many moving parts and keeps shifting, so that it is hard to say how long the country can continue without fresh bailout aid.
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