Economy
Greece Said To Tap Social Security Capital To Fund T-Bill Rollover
by Tyler Durden, via Zero Hedge.com:
As reported over the past two days, in order to fund the payment on various imminent debt maturities to the IMF, the cash-strapped Greek government has been forced to consider, among other things, raiding Greek pension to procure the required funds. We noted yesterday, citing Reuters, that Greece will use short-term repo transactions to transfer the cash, but one government official said they could not be used to repay the IMF.
Greece is tapping into the cash reserves of pension funds and public sector entities through repo transactions as it scrambles to cover its funding needs this month, debt officials told Reuters on Tuesday…. At least part of the state’s cash needs for the month will be met by repo transactions in which pension funds and other state entities sitting on cash lend the money to the country’s debt agency through a short-term repurchase agreement for up to 15 days, debt agency officials told Reuters
“Repo” because the implication is that this funding need is temporary. Of course, should it provde to be anything but, the local population will promptly exhibit very angry tendencies once it is revealed that the “radical left” government plundered Greek pensions to pay the IMF which could then immediately turn around and use the fund to pay the Kiev government, which in turn could pay Putin to keep the gas running. Where Greece will find an additional source of funds to replace this Pension “repo” was not quite clear as of this writing.
Which brings us to the Greek T-Bill rollover auction this morning: an auction which as DB’s Jim Reid summarized is one of the two main events of the day, as follows:
