Reuters reports that top EU officials have for the first time discussed the possibility of a Greek default, with three main scenarios emerging. The least likely, according to reports, is a deal to free-up bailout funds in time to meet all of Athens’ June obligations to creditors, particularly the IMF.

Government representatives from the countries of the euro area studied the situation during a meeting on Thursday evening in Bratislava.
A second possibility was the extension of the current program, which expires on June 30.

The third, discussed in open session for the first time, was a scenario dealing with a Greek default, assuming that the leftist government could not make payments.

Reuters quoted the Greek representative at the meeting as saying the Greek side would do everything to seal a deal in time.
A deadline for tabling and approving such an agreement is considered June 18, when a Eurogroup meeting convenes in Luxembourg.

The “catch”, according to the same line of thinking, is whether even an dramatically accelerated deal will allow disbursement of loans by June 30 — although the “smart money” says that if a deal is reached a way will be found to funnel cash to Athens.

Greek govt denial

Government sources in Athens later dismissed the report, saying such a prospect was discussed, either officially nor unofficially. The sources merely noted that Athens was working towards an agreement as soon as possible.