The interest rate for Greek 1-year paper is 70%. 2-year paper is 50%. Talks between the Greek government and the Troika, the IMF, the ECB, and the EC, European Commission, have been called off. The Greek government says it’s numbers are getting worse because of the recession. The Troika says it’s only partly because of the recession. The Greeks are not carrying out the austerity program. They are not selling government assets.
As a result 8 billion euros needed to continue the first Greek bailout in September are not being handed out. The Greek government can’t pay it’s debts without the loan, and it needs it before September 30.
A senior IMF economist says there could be a default this month. I’m inclined to agree, especially if the German Constitutional Court rules on Wednesday that Merkel’s July agreement about the second Greek bailout is unconstitutional.
Greece could default not only this month but this week.