No, No, No Says Draghi to Greece; Spanish Economy Minister Insists 3rd Bailout Talks Underway

Spanish Economy Minister Insists 3rd Bailout Talks Underway

Spanish economy minister, Luis de Guindos, has reiterated his position that Third Greece Bailout discussions are in play.

Luis de Guindos put back on the table the possibility that the Troika is preparing a new bailout for Greece. "The four month extension of the aid program will show us the real situation and establish the need for a third rescue," he assured an information forum. "Next week, the Eurogroup meeting will hopefully expose the discussions that have occurred," he added.

Jean-Claude Juncker denied this week that it was negotiating a third bailout for Greece, but it's the second time that the economy minister made statements in this regard. In particular he spoke of a package of between 30 and 50 billion euros of which Spain would guarantee between 13% and 14%. Our country has already contributed 26 billion euros in respect of guarantees and loans for the Greek economy.

Whom to Believe?

Once again this is a question of whom to believe.

I don't know for the simple reason that no one involved merits the benefit of the doubt.

I discussed this issue at length in Greecification of Spanish Politics and the Lies of Spain's Ministers.

The actual amount of Spain's loan to Greece is €6.65 billion. Everything beyond that is a loan guarantee, not current paid out of pocket. The guarantee is real, but it's not spent money ... yet.

See the preceding link for discussion.

No, No, No Says Draghi to Greece

Keep Talking Greece has another interesting post today: Varoufakis says “We have Plan B” after ECB Draghi’s says No,No,No to liquidity.

“We have Plan B” Greek Finance Minister Yanis Varoufakis told private Mega TV on Thursday, just a couple of hours after ECB head Mario Draghi linked ECD funding with Greece’s compliance to the bailout and austerity program, righting the conditions for liquidity.

At a press conference today, Mario Draghi distributed money around, but to the Greek, he said three times “No”.

NO, ECB will not allow Athens to sell additional T-bills total worth 8 billion euro.

NO, ECB will not buy Greek bonds under its new assets-buying program.

NO, ECB will not accept Greek bonds as collateral.

“The ECB is a rule-based institution. It is not a political institution. It cannot provide monetary financing to governments, either directly or indirectly. We cannot give money to banks to fund governments,” Draghi said.

Odd, that he did not add that he had no problem to fund banks and put the burden on taxpayers around Europe, when it comes to fund the oh-so-dear banks.

P.S. No, Varoufakis did not elaborate on the Greek Plan B.

Musical Tribute

I believe I see four distinct no's in the above article, and I have the perfect musical tribute.



Link if video does not play: Ringo Starr - The No-No Song

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com