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Greek debt payment due today

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Greece via Shutterstock
The timing of this payment is especially interesting, as Greece is still deadlocked and may have to call another election to settle the government. Add to that the increasing discussions among EU leaders that a Greek departure from the euro is on the table and it gets interesting. Greece has 30 days after today to make that payment but otherwise, it defaults.

From the beginning of this crisis some have suggested the best of the worst cases scenarios was for Greece to default and move on but that was unacceptable for the political class of Europe. They shoved bailouts down the throats of Greece which only added more pain to an already suffering country. It did nothing to help. Now we're back to the discussion that should have occurred years ago.

More on the Greek bailout payment at CNBC:
And at this late hour, there appears to be no decision from Greece on whether those holders will get their money. There is huge internal division about what to do, particularly because Greece is without a government.

Advisors have told Greece not to pay it because they should not reward the hold-outs, especially after Greece made threats to the hold outs during the exchange, saying there would be no money for them.

Additionally, it’s likely a lot of that debt is held by hedge funds that paid only pennies on the euro. If they get paid in full, it could double their investment.

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