It now appears that a Greek default is imminent. Over the last few days there was been a flurry of activity aimed at averting the prospect of a Greek default. By Saturday morning the prospect of last minute deal all but dissolved to ashes. On Friday, Greek Prime Minister Alexis Tsipras announced that a referendum will be held on 5 July to vote on the reforms proposed by Greece’s creditors. Greek financial minister. Eurozone financial ministers, however, were not encouraged by the move. They rejected a Greek request to extend a bailout program beyond the 30 June deadline and the Greek Finance Minister Yanis Varoufakis departed Brussels shortly afterwards.
Now, Eurogroup ministers appear to be preparing plans to deal with the damage of a Greek default. Meetings are taking place Saturday evening in Brussels to discuss that very topic. Discussions between Greece and her creditors have broken down in the past and eleventh hour deals have been struck, but this time it looks and feels ominously different.
I will post more on Sunday.