Failed Negotiations Brings the End Closer
The Eurogroup negotiations with Greece on 11 May 2015 produced no results, and as such, the outstanding €7.2Billion in relief funds will continue to be withheld from Greece. Without these relief funds (or the rumoured Gazprom advance of € 3Bn - € 5Bn on future gas pipeline revenues), it is very likely that Greece will default on its 12th May IMF €750 Million loan repayment and the European and Greek markets will go into a tailspin.
What if Greece fails to meet this IMF loan instalment; will it be classified as a default?
TPTB (the powers that be) will probably find a way of avoiding the classification of any Greek 'non payment' as a 'default' per se, because a default would necessitate a write down of the 'book value' of Greek sovereign debt; which in turn would result in losses by all holders of that debt, and trigger claims on some of the underlying financial derivatives such as CDS (credit default swaps) which, in total, are estimated to be in the € Trillions.
Any 'non payment' of the scheduled Greek sovereign debt commitments should be constructive for the price of gold and silver bullion.