9 Jun 2015
All the attention remains on Greece so far – DB
FXStreet (Edinburgh) - Jim Reid, Analyst at Deutsche Bank, reviewed the recent events coming from the Greek front.
Key Quotes
“With little in the way of data or news flow, it was all eyes on Greece which once again dominated headlines”.
“A WSJ article in particular attracted much of the attention with the article suggesting that Greece and its Creditors are in discussions over an extension of the current bailout program until the end of March 2016”.
“The article suggested that the proposal was first presented to Greece last week at Greek PM Tsipras and the EC’s Juncker meeting on Wednesday”.
“The article notes that the idea is to convert financing set aside for propping up Greek banks at the EFSF into usable money, with the program then aligning the existing EFSF program with the IMF which also expires in March 2016”.
“Although this would mean no new program needs to be passed through European parliament, the sticking point would likely still be the issue of passing through Greek parliament should this be seen as the Troika staying for longer, as well as the chance that it would be unlikely that there is any debt relief up front”.
“The article aside, there was little material news yesterday and talks continue to remain in deadlock. German Chancellor Merkel, French PM Hollande and US President Obama were among the leaders urging progress and swift action yesterday”.
“Greek spokesman Sakellaridis, meanwhile, reiterated that ‘our proposal is the starting point’ in relation to negotiations, while Greek press Ekathimerini noted that a delegation of Greek officials is in Brussels continuing talks”.
Key Quotes
“With little in the way of data or news flow, it was all eyes on Greece which once again dominated headlines”.
“A WSJ article in particular attracted much of the attention with the article suggesting that Greece and its Creditors are in discussions over an extension of the current bailout program until the end of March 2016”.
“The article suggested that the proposal was first presented to Greece last week at Greek PM Tsipras and the EC’s Juncker meeting on Wednesday”.
“The article notes that the idea is to convert financing set aside for propping up Greek banks at the EFSF into usable money, with the program then aligning the existing EFSF program with the IMF which also expires in March 2016”.
“Although this would mean no new program needs to be passed through European parliament, the sticking point would likely still be the issue of passing through Greek parliament should this be seen as the Troika staying for longer, as well as the chance that it would be unlikely that there is any debt relief up front”.
“The article aside, there was little material news yesterday and talks continue to remain in deadlock. German Chancellor Merkel, French PM Hollande and US President Obama were among the leaders urging progress and swift action yesterday”.
“Greek spokesman Sakellaridis, meanwhile, reiterated that ‘our proposal is the starting point’ in relation to negotiations, while Greek press Ekathimerini noted that a delegation of Greek officials is in Brussels continuing talks”.