[Reverberation]

Yes we CAN

http://www.zerohedge.com/news/2015-0...lan-if-no-deal

On the heels of Thursday's failed Eurogroup meeting and heading into what is again being presented as an all or nothing, "Lehman weekend" for Greece and its creditors, reports suggest the troika has offered Greece a third bailout program:

GREEK CREDITORS OFFER EU15.5B OVER NEXT 5 MONTHS: HANDELSBLATT
ECB, IMF, EU OFFER GREECE 3RD AID PROGRAM: HANDELSBLATT
GREECE’S CREDITORS PROPOSE EU15.5B TIED TO AID DEAL: OFFICIAL
Here are the details, according to Bloomberg (citing an unnamed EU official):

EU creditor proposal foresees EU8.7b in EFSF funds: official

Creditor proposal foresees EU3.3b in SMP profits: EU official

Creditor proposal foresees EU3.5b in IMF funds: EU official
If true, this would mark a dramatic about-face for the IMF which had suggested it would not be interested in participating in a third Greek program. Similary, lawmakers in Berlin have voiced their opposition to a third bailout program for Athens as the German public has grown tired of throwing money at the Greek 'problem.'

As for the specifics as outlined above, note that if Greece receives €3.3 billion from SMP profits it will mean that the ECB has forfeited the money it made on the Greek bonds it purchased in the past, effectively allowing Athens to repay the central bank with its own money. As for the EFSF funds, it's long been suggested that bank recap funds could be chanelled to Athens under the 'right' circumstances and apparently imminent default is as good an excuse as any.

European finance ministers will meet again on Saturday. Angela Merkel, who met with Greek PM Alexis Tsipras and French President Francois Hollande on Friday, has indicated that a deal must be struck before the market opens on Monday. Here's a bit of color from Reuters:

The leaders of Germany and France discussed extending Greece's bailout programme and providing financing with Greek Prime Minister Alexis Tsipras on Friday on the eve of a decisive meeting of euro zone finance ministers, a French source said.

Chancellor Angela Merkel and President Francois Hollande had a private meeting with Tsipras before the final session of an EU summit in Brussels, urging Greece to accept a cash-for-reforms deal on Saturday to unlock frozen aid and avert a default.

"On the substance, the gap is not so wide. They discussed what has to be done today and tomorrow to conclude on issues still to be settled relating to reforms, the extension of the programme and the question of financing," the French source said after the roughly 45-minute meeting.

Both Merkel and Hollande stressed that Saturday's meeting of the Eurogroup was the decisive moment for a deal and there was no need for another euro zone leaders' summit, the source said. If necessary, they would have further contact with Tsipras before finance ministers meet at 5 p.m. (1500 GMT) on Saturday.
As for the finance ministers who will attend that meeting, they are preparing for the worst:

EUROGROUP PREPARES EMERGENCY PLAN IF GREECE REJECTS OFFER:SRCE