Another Greece Update

According to the interior minister of Greece, the indebted country doesn’t have the money to make its June payment to the International Monetary Fund. This is the most explicit talk that there has been about a default by Greece, and it gives a more dire picture of why the current talks that have been ongoing in the European Union need to come to a conclusion quickly.

Greece has already been shut out of further bailout money and the bond markets, and they are scrambling to pay wages and pensions. Talks have been going on for four months now, and resolution will be a necessity if the situation is going to improve any time soon. There is currently about $7.9 billion in remaining aid available, but for the moment, it is locked. If talks can help to establish this, the Greece issue will be resolved for the near future. It’s not a permanent solution, but it would count as a vote of confidence for the EU economy as a whole.

The immediate result would likely be the euro getting a momentary boost against some other currencies, including the Japanese yen and the British pound sterling. The U.S. dollar is more questionable simply because it is so strong right now. Still, short term traders, including binary options traders, will be able to use this type of information to their advantage and turn the potential news of a Greece and IMF resolution into a quick profit. The trick is to get a jump on the rest of the people that will act on this type of news. Having a good news feed service will be advantageous if you are a Forex trader, or trade currencies in the binary market. A live streaming service is best, and it’s something that will be helpful in areas beyond just this one piece of news.

For the month of June, Greece owes the IMF $1.8 billion. The interior minister, Nikos Voutsis, has already said that the money is not there, nor will it be given. Instead, Greece is completely relying on the fact that their lenders will be able to come to an acceptable conclusion for them. It’s a risky bet, but it doesn’t seem like Greece has any other option at the moment. Hopefully, further lending will allow Greece to create more jobs and provide more internal help for the country. Without international help, such as what they are expecting from the IMF, this can’t happen, though.

For the benefit of Greece, the government is not planning on accepting humiliating terms on any proposed deal. If Greece does leave the euro, there is a chance that it could be the beginning of the end of this shared currency. That’s a worst case scenario, of course, but a Greek default does point to a lot of other issues that need to be fixed, including issues within other countries. For this reason, EU officials need to tread lightly with Greece. They might not need to worry about Greece specifically, but they do need to worry about the entire European economy.

Greece has to do its part, too. They might not have access to international money markets right now, but they do need to find a way to repay their debts and keep their nation functioning. Creating more jobs, increasing their gross international export numbers, and still finding a way to keep their government stable are all key components of a solution. Their ministers have said that they’ve met the IMF three-quarters of the way, but perhaps a little bit more give on their part will make the process even better.