ECB’s Greek debt cannot be restructured – Noyer

United States stocks fell on Monday, taking their cue from a downbeat session in Europe, while government bond prices rose, following Greek voters’ overwhelming rejection of the country’s latest bailout terms.

On Monday, United Kingdom bookmaker Ladbrokes said more money was being placed on Greece staying in the euro after controversial finance minister Yanis Varoufakis resigned.

The central bankers support neoliberal economic theory that promotes balancing budgets on the backs of the poor, a policy that I despise and repudiate.

The negotiations are complicated for the European creditors by Tsipras’ triumph in Sunday’s referendum.

Sigmar Gabriel, the German vice-chancellor, said the landslide rejection of European Union austerity demands in the Greek referendum changed nothing, demanding that the left-wing Syriza Government must accept further belt-tightening without any prospect of debt relief if it wishes to remain in the eurozone. “We have already had so many deadlines”. Banks have been closed for the past week, a €60 daily cash withdrawal limit has been imposed and capital controls are squeezing Greek businesses. However, the ECB last week refused to provide more loans to Greek banks which continue to hemorrhage from withdrawals the past weeks as residents either deposited their euro in foreign banks or kept it at home.

As for how to plug the capital holes, Credit Suisse Group analysts Neville Hill and William Porter suggested three possible courses in a Monday research note: bankruptcy; a recapitalization from the European stability mechanism that would put Greek banks under EU ownership; or, in the case of a ‘Grexit, ‘ or Greek exit from the eurozone, capitalization by the Bank of Greece.

0627 – Euro zone governments could consider writing off some of Greece’s debt if Athens commits to a package of reforms, Luxembourg’s Finance Minister Pierre Gramegna says.

The ECB also made it harder for them to access existing funding, by applying a bigger discount – or haircut – to assets the banks offer as collateral.

He said the prime minister had judged it “potentially helpful to him” if he is absent from the upcoming meetings with Greece’s creditors.

A replacement was to be announced later today.

But everything hinges on European reaction. But with Greece’s bailout programme now officially expired and in the absence of any new programme, the conditions for its continuation are no longer met.

France’s finance minister, Michel Sapin, indicated that discussing Greece’s debt is not taboo, saying the country could not recover with its current obligations “in the months and years to come”. “And we believe there are valid grounds for there to be an increase in ELA liquidity“.

Germany’s Vice Chancellor Sigmar Gabriel raised the option of reducing Greece’s debt load-but only if the government commits to overhaul its economy.

Also in the statement, the European Central Bank said that it is “closely monitoring the situation in financial markets” and stands ready to use “all the instruments available within its mandate”. But if there was a time for forbearance, this could be it. A decision to increase the ELA by a small amount-perhaps €3-5 billion-would be seen as an important good-faith gesture and would keep the ATMs working for a few more days, during which one last effort to negotiate could take place.

Greece voted “No” to the Euro on Sunday, but many ATM machines are now empty and despite the peoples victory there is much frustration and confusion on the streets.