Monday, April 20, 2015

Greece Moves to Seize Local Government Cash

Greek leadership, following the old saying, in for a penny in for pound, continue to play with fire decreeing that local governments need to transfer cash balances to the central bank. This action, the chasing of bad with good money, will only drive the wedge that separates the interest of the private and public sector even deeper.

Headline: Greece Moves to Seize Local Government Cash

Running out of options to keep his country afloat, Greek Prime Minister Alexis Tsipras ordered local governments to move their funds to the central bank.

With negotiations over bailout aid deadlocked, Tsipras needs the cash for salaries, pensions and a repayment to the International Monetary Fund. Greek bonds fell after the move, pushing three-year yields to the highest since the nation’s debt restructuring in 2012. The order was questioned by local officials and slammed by the leading opposition party.



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