Greece pays its debt
From a macro point of view it doesn’t change many things but today’s payment by Greece to the IMF has positively surprised the markets. Varoufakis now looks a nice face. In fact the government of the most indebted country in the West is going to pay tomorrow $750 mln to the IMF. Many investors for a moment thought the IMF was going to defer the payment. After the declaration of the IMF’s director Christine Lagard to the CNBC that the international institution would not tolerate any delay on the payment by any country, the “poor” Greece had only one solution: pay its debt.
Even more disappointing for the Greek people is the fact that now is the new government that pays the debts, the one who promised would not have sacrificed them anymore. We have seen some of the most important leaders of Greece policy failing to maintain their promises and then loosing the power in several anticipated election that the country has been forced to sustain.
The fact is that the country has not passed the problems. The next 5 June there is another deadline. Some $300 mln have to be paid again to the IMF. Today the so called Euro group which unifies the finance ministers of the European countries will release a common declaration on the next steps that will be taken to get Greece out of the terrible financial situation.
From the previous declarations that the single ministers have released the markets don’t expect any big change on the policy of the EU related to Greece. This policy of intolerance leaded by the finance minister of Germany seems that will continue a little more. Now the question is: for how long?
Everybody knows that Greece can’t pay its debts. Killing a country that can’t pay its debts is not a good idea because if killed, it will never pay back anything but giving a good lesson to it, makes sense. This seems to be the policy that Germany and some northern countries of Europe are implementing. The message to the Greek politicians is clear: learn to spend as much as you earn.