ECB raises emergency funding cap for Greek banks

Saved… for now.

 

The European Central Bank (ECB) has raised the funding cap on its Emergency Liquidity Assistance (ELA) for Greece’s banks, according to a CNBC source.

The decision, made in a conference call Friday and first reported by Reuters, followed a meeting of the euro zone’s finance ministers on Thursday, where the ability of the country’s lenders to open up for business next week was questioned.

It comes as a specter of a run on Greek banks is looming, after yet another round of failed rescue-for-reforms talks.

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IMF Warns No Leeway on Payment as Merkel Urges Greece to Bow

International Monetary Fund chief Christine Lagarde said Greece won’t be given a grace period if it fails to make a payment at the end of the month as Chancellor Angela Merkel said there’s still time to reach a deal on aid.

Lagarde, whose policies were labeled “criminal” last week by Prime Minister Alexis Tsipras, said that Greece will immediately be considered in default unless it pays about about 1.5 billion euros ($1.7 billion) due to the fund on June 30.

“It will be in default — it will be in arrears vis-a-vis the IMF, yes, on July 1,” Lagarde said at a press conference in Luxembourg where euro-area finance minister meet on Thursday to discuss the deadlock over Greece. “I hope it’s not the case, I really do.” Continue reading

Eurozone To Impose Capital Controls On Greece If No Deal By Weekend: German Press

It looks like we’re going to see a painful first shot fired at Greece if they can’t come up with a deal. What exactly will happen out of this is anyone’s guess, but here are three (but not limited to) possible scenarios while Germany’s Fourth Reich drops the hammer:

  • Greece capitulates and is brought to its knees and becomes a German vassal state like Cyprus. (40% chance)
  • Win-win situation for all is found with dual economy compromise. A dual economy with weaker EU nations on the periphery and two currencies as in Cuba. (40% chance)
  • Grexit with a following meldown of the world’s largest economy, the European Union. (20% chance — less likely due to high strategic importance and national security of Europe)

 

Just as we hinted earlier when we reported that the ECB may use the “nuclear option” on Wednesday and yank Greek ELA, here comes German Suddeutsche Zeiting [sic] with a report that Eurozone countries have reached a Greek emergency plan (yay)… which calls for the imposition of capital controls on Greece if no deal is concluded by the weekend (oh no). Continue reading

Iran says much of nuclear deal already agreed

Deputy FM Abbas Araqchi indicates differences remain but ‘major part’ have been worked through

Iran’s Deputy Foreign Minister Abbas Araqchi said Tuesday that major portions of a draft nuclear agreement between Tehran and the P5+1 worlds powers have been agreed on, while acknowledging that some small differences remained.

“We have now a text that a major part of it, even all its phrases, has been agreed but a part of it is still a source of difference,” Araqchi said in an interview upon arrival in Vienna on Tuesday, ahead of a next round of negotiations. Continue reading

Russia and China Vow Not to Hack Each Other

The strengthening is a telltale sign of America being the target of One Clenched Fist. First comes the social-economic integration, then comes the military. Both

 

Russia and China signed a cybersecurity agreement on May 8, saying they will not conduct cyberattacks against each other. The deal also said the two would work together to counteract technologies they perceive as destabilizing to their internal affairs.

The text of the agreement is posted on the Russian government’s website. It says the two nations also agreed to share information between law enforcement agencies. In addition, they will freely exchange technologies and work together toward security of their information infrastructure. Oleg Demidov, a cybersecurity consultant at the pir Center, said the deal was an “important step” for the two nations. He said it accelerates Russia’s “pivoting to the East.”

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Iran wants nukes to foster extremism, opposition leader tells US

Maryam Rajavi, president-elect of the Paris-based National Council of Resistance of Iran, also said Tehran wants nuclear weapons to foster Islamic extremism.

“The ultimate solution to this problem is regime change,” Rajavi said. Continue reading

Iran could nuke New York, Bennett warns Americans

Economy Minister Naftali Bennett warned American TV viewers Sunday that Iranian nuclear ambitions were a direct threat to the West, and that the regime in Tehran was developing its missile program abilities with an eye to launching nuclear attacks on major Western cities.

Bennett, who is Israel’s economy minister, told Fox News in an interview that Iran, “the biggest exporter of terror in the world,” was developing nuclear warheads and intercontinental missiles capable of reaching New York, London and Paris. Continue reading

No deal: Greece-EU bailout talks break down, Athens given 1 week ultimatum

The eurozone has given Greece an ultimatum of one week to request an extension of its bailout deal, as Athens turned down the offer dubbing it “absurd” and “unreasonable”. Greece’s finance minister said they were ready to sign – but something different.

But despite not reaching a deal, Greece Finance Minister Varoufakis insisted Athens is “ready and willing” to reach a deal and that he is confident of reaching one in 2 days, he said in statement after the talks. Continue reading

Major Israel-US rift over Washington plan to let Tehran continue enriching uranium with sanctions relief

Israel announced early Thursday, Nov. 7, that it is utterly opposed to the new proposal for Iran’s nuclear programwhich  the United States plans to put before the two-day Geneva conference beginning later today .

Prime Minister Binyamin Netanyahu, when he met US Secretary of State John Kerry in Jerusalem Wednesday night, bitterly accused the Obama administration of yielding to the Russian-backed Iranian position. Should Tehran renege on the deal, the US proposal leaves it with the capacity for enriching enough weapons-grade uranium in 10 days to build several nuclear weapons. Continue reading

Joint US, NATO, Israeli strike awaits Syria

Even though the ‘red line’ was crossed recently, the decision to invade was years ago. Syria is only the next step to the main target: Iran.

The coming DEBKA-Net-Weekly out Friday expands on its disclosure of last week that during his visit to Israel, US President Barack Obama struck a deal with Prime Minister Binyamin Netanyahu for military action against Syrian chemical weapons. The new issue will flesh out that decision with exclusive revelations on NATO’s role in setting up the expedition, its participants, targets and ramifications, including likely responses by Moscow and Tehran. Continue reading

‘Khartoum allowing Iran to establish Red Sea base’

Sudanese opposition groups accused Khartoum this week of reaching a secret agreement with Tehran to establish an Iranian military base on the Red Sea.

Anti-government newspaper Hurriyat Sudan cited an unnamed opposition source on Monday as saying that the Sudanese government had struck a deal with Iran for building a base on the Sudanese coast.

Meanwhile, Sudanese rebel group The Justice and Equality Movement (JEM) said on Sunday that Sudan’s President Omar Bashir has reached a “very advanced” arrangement with Iran’s Revolutionary Guard Corps (IRGC) to establish a naval base either in Port Sudan or elsewhere on the Red Sea, according to the Sudanese anti-government news outlet Al Rakoba. Continue reading

Khamenei Preparing for a Deal?

There are unmistakable signs coming out of Iran that Supreme Leader Ayatollah Sayyid Ali Khamenei is laying the groundwork for a possible deal with the United States. This shift began in February, when Khamenei reaffirmedhis opposition to nuclear weapons on both religious and strategic grounds. The following month, Khamenei praisedPresident Barack Obama’s “good and wise statement” at AIPAC that time for diplomacy still existed, conveniently ignoring that the U.S. leader had also indicated his willingness to undertake military action if necessary. As negotiations between Iran and the P5+1 got underway, Khamenei’s appointees in the clergyjudiciary, and media all sounded a note of optimism. It’s now being reported that Iran is willing to limit the scope of its uranium enrichment.

Most have speculated that Khamenei’s sudden willingness to compromise is the result of his desire to avoid the looming sanctions against Iran’s oil exports. Although there may be some truth to this, at least as important is surely Khamenei’s recent consolidation of power at home. By purging his political competitors, the Supreme Leader has eliminated a significant source of his past opposition to a deal – his fear that his internal opponents would most benefit from it.

The aging Khamenei is also likely thinking of his legacy. Whereas Imam Khomeini is revered for toppling the Shah, creating the Islamic Republic system, and repelling Saddam Hussein’s invasion in 1980, Khamenei’s tenure as Supreme Leader has been rather forgettable. While curbing some of the excesses of the Khomeini era, social and political rights remain restricted, the economy underperforms, and Iran is viewed with suspicion if not hostility abroad. As it stands today, Khamenei’s tenure as Supreme Leader is easily forgotten. By achieving a rapprochement with the United States, Khamenei would ensure himself an eternal spot in Iranian history.

Full article: Khamenei Preparing for a Deal? (The Diplomat)