Loading ...Greece May Pay Wages And Pensions In IOUs
Tyler Durden’s pictureSubmitted by Tyler Durden on 04/16/2015 20:15 -0400
Earlier today we said the following about the Greek government’s rapidly deteriorating cash situation:
So it’s either pay salaries and pensions or pay the IMF which is tragically ironic because Athens has already gone the route of plundering pensions to make payments to its creditors, the only difference is that now, instead of “borrowing” money from the public coffers and hoping to pay it back in the interim before anyone actually gets shorted, you’re talking about simply not paying people at all (or paying people with IOUs which would be the hilarious rough equivalent of conducting repos with individual citizens) which needless to say could turn into an untenable social and political issue virtually overnight, not to mention the fact that if the government defaults you would almost certainly see the imposition of capital controls in order to stem the inevitable deposit flight. Athens owes nearly €2 billion in public sector wages and pensions at the end of the month.
more http://www.zerohedge.com/news/2015-04-16/greece-may-pay-wages-and-pensions-ious