Morning Greece: Deal Postponed

 

From the NY Times: Deal on Lifeline to Avert Greek Bankruptcy Is Postponed

Europe’s finance ministers unexpectedly put off approval early Monday of the next installment of aid to debt-laden Greece, delaying the decision until July and demanding that the Greek Parliament first approve spending cuts and financial reforms ... Athens needs the next payout of 12 billion euros from its existing 110 billion euro bailout package by mid-July in order to remain solvent.

From the WSJ: Finance Ministers Struggle With Long-Term Fix, but Get Closer on Short-Term Cash

Greece will run out of cash in the middle of next month unless funds earmarked under last year's bailout are released. Unwilling to let that happen, finance ministers are likely to approve disbursement of €8.7 billion; the International Monetary Fund, which is also contributing to the bailout, would likely agree to pay out €3.3 billion in the coming weeks.
...
In the early hours of Monday morning, [finance ministers] released a statement saying they would decide on the "main parameters" of a new bailout package in July. The statement said the new bailout would include "informal and voluntary" arrangements with creditors that would produce a "substantial reduction" in the amount of new funding necessary—but without casting Greece into default.

The Greek 2 year yield is at 28.4%. The ten year yields are up to 17.4%.
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