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Greeces rejects creditor pleas to change courseGreeces governmentWORLD EXCLUSIVES

DAILY NEWSDate:- 30-6-15

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European equity marketsGreeces government entered its final day in an EU bailout defiantly rejecting eleventh-hour pleas from its eurozone creditors to change course. www.MCRWORLD.com- Since 2015The IMF default

The IMF default, which will make Athens the first developed country ever to go into arrears with the fund, is not expected to have a direct impact on Greeces status in the eurozone; credit rating agencies and EU bailout lenders have signalled they will not consider non-payment a credit event that triggers other defaults a move that would bankrupt Athens immediately. It is now on a path that will lead to it defaulting on a 1.6bn loan repayment to the International Monetary Fund and being without a financial safety net for the first time in five years.2

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But the expiry of the bailout at midnight in Brussels is likely to force the European Central Bank to reconsider its emergency lending to Greek banks, which is the only lifeline keeping the financial system from collapsing.Although the ECB is unlikely to cut off lending completely, it could require banks to post more collateral to get the emergency loans. Some officials worry that at least one of Greeces four systemic banks would not have enough collateral to survive if the ECB decided to agree to a haircut. The exit of Greece from the euro area, which used to be a theoretical question, can unfortunately no longer be ruled out, Benoit Coeur, the ECB board member responsible for Greek issues, said in an interview published on Tuesday in the French financial daily Les Echos.According to EU diplomats, Jean-Claude Juncker, the European Commission president, on Monday night made a last-ditch effort to convince Alexis Tsipras, the Greek prime minister, to change course, calling the Greek prime minister to ask him to accept a final offer published by the commission on Sunday.

The referendum is taking place normally, said the official, though he cautioned Athens may make its own proposal later on Tuesday. But the debt restructuring offer would only be along the lines of a previous November 2012 agreement that Mr Tsipras has repeatedly said was inadequate..Date today 30-6-15Mr Juncker held out the possibility of debt relief if Mr Tsipras agreed to the offers terms and campaigned for a yes vote in Sundays referendum.

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In our view, the Greek governments decision to hold a national referendum on official creditors loan proposals indicates that Prime Minister Alexis Tsipras will prioritise domestic politics over the countrys financial and economic stability, commercial debt service, and membership of the eurozone, S&P wrote.Haris Theoharis, a former secretary-general in charge of revenue collection, told the Greek parliament Tuesday morning that a team of officials from the finance ministry was preparing an emergency plan for Greece to readopt the drachma.Mr Theoharis said officials from the governments general accounting office, which handles the national accounts, were working on the plan at the prime ministers office.A government spokesman immediately denied that such a team existed.Mr Theoharis was sacked last year by the centre-right government after encouraging a Greek oligarch to pay back taxes worth several hundred euros, on grounds he had made a mistake. He is now an MP with the small centre-left To Potami party.Use of templates European equity markets, which opened calmer than on Monday, cautiously welcomed the media reports despite the expectation of the IMF default. The FTSE Eurofirst 300, which was down 1.67 per cent, is down 0.63 per cent while Italian and Spanish government bond yields are now lower on the day, reflecting a burst of strength in prices.Mariano Rajoy, Spains prime minister, on Tuesday joined fellow eurozone leaders by issuing a blunt warning to Greek voters that a no vote will force the country to leave the eurozone.He also argued that it would be good for Greece if Mr Tsipras, who is backing a no vote, was defeated in the plebiscite, paving the way for talks with another government in Athens.

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