With the major bookmakers, inclusing Willam Hill, Ladbrokes, Fred Done and Paddy Power abbouncing they have closed the book on all bets concerning the Greek exit (Grexit) from the Eurozone, the Boggart Blog bookie has no option but to follow suit.
In the event of a rush of money (on when rather than if) he would not be able to hedge it with the bigger players.
The move from bookies was prompted by information leaked from the IMF:
Greek officials have made an informal approach to the International Monetary Fund to delay repayments of loans to the international lender, highlighting the parlous state of Greek finances, but were told that no rescheduling was possible.
According to officials briefed on the talks by both sides, Athens was persuaded not to make a specific request for a delay to the Fund, which is owed almost 1bn in two separate payments due in May.
Although Athens was rebuffed, the discussions, which occurred in private earlier this month, are a sign that the Greek government is finding it increasingly difficult to scrape together enough money to continue to pay wages and pensions while meeting its debt payments to external lenders.
Yields on Greek bonds soared on Thursday following the news, with yields on three-year paper rising 134 basis points to 25.10 per cent, the highest since the countrys restructuring. Its 10-year yields climbed 45 basis points to 12.18 per cent
IMF officials have been consistent in demanding that a rescheduling of repayments can only come as part of a completely renegotiated bailout programme. Should it miss a payment, Greece would become the first developed economy to go into arrears at the Fund, something only counties like Zaire and Zimbabwe have done in the past (and with disastrous consequences.)
One inside source said the proposal was to reshuffle the repayment schedule for the IMF loan over the coming months, allowing Greek government leader Alexis Tsipras the money to pay pensions and public sector salaries while negotiating with European creditors over payment of the next tranche of bailout loans.
As a reminder, Thursday morning, reports indicated that Athens has appealed to the IMF for a reshuffling of its debt repayment schedule so that the government can pay pensions and public sector wages while attempting to negotiate a deal with creditors Tsipras was rebuffed.
Graham Sharpe, A spokesman for William Hill had this to say:
“Greece had been heavily backed down ro 1/5 to be the first to quit the Eurozone, and we’d also been shortening the odds for Greece to leave during 2015. They’d come down from 5/1 to 3/1.It is now looking increasingly likely that they could begin the process of departing very shortly’
‘No one is interested in backing Greece to stay in the Eurozone until the end of the year, so we decided to pull the plug on the markets until either the decision to leave is taken, or the crisis point passes and a plan is put in place enabling the country to remain in’ added Sharpe.]
Has German Finance Minister Goven The OK For A Greex EU Exit Referendum?
Comments by German Finance Chief Wolfgang Schaeuble seemed to indicate that the EU’s paymaster is ready to let Greek PM Tsipras put continuing Euro single currency membership for Greece to a popular vote. Any such move could affect negotiations with creditors by allowing Syriza to claim it hasnt betrayed its support base, but a vote also risks plunging the country into turmoil should the gambit backfire