zerohedge.com / by Tyler Durden on 07/13/2015 14:57
While a Greek (pre) deal in some format was largely expected this weekend (especially following the unprecedented humiliation of Greece that would allow the Troika to repay… the Troika) the biggest stunner from the past 48 hours was Schauble’s insistence (which as we subsequently learned had been coordinated with Merkel) that either Greece accepts draconian terms which will strip the country of its sovereignty, or it will suffer a 5 year “time out” from the Eurozone.
The Greek authorities reiterate their unequivocal commitment to honour their financial obligations to all their creditors fully and timely.
[Provided that all the necessary conditions contained in this document are fulfilled, the Eurogroup and ESM Board of Governors may, in accordance with Article 13.2 of the ESM Treaty, mandate the institutions to negotiate a new ESM programme, if the preconditions of Article 13 of the ESM Treaty are met on the basis of the assessment referred to in Article 13.1.]
[In case no agreement could be reached, Greece should be offered swift negotiations on a time-out from the euro area, with possible debt restructuring.]
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