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5 May 2015
Greek debt talks set to resume today – DB
FXStreet (Edinburgh) - Jim Reid, Analyst at Deutsche Bank, reviewed the recent developments in the Greek front, in light of the upcoming Eurogroup meeting.
Key Quotes
“Away from the data, Greek headlines yesterday were focused on an article published in the FT which suggested that the IMF may cut off its support to Greece unless European lenders write down significant amounts of its sovereign debt”.
“The article suggests that the IMF may hold back its portion (around half) of the €7.2bn tranche of bailout aid that Greece is in talks over”.
“The article does appear to be somewhat backdated however, with the note referring to data arising from the eurozone finance ministers meeting in Riga last month which showed Greece would post a primary deficit of up to 1.5% of GDP, well below the 3% primary surplus target”.
“More importantly however, a Reuters article yesterday reported that the ECB is unlikely to change the collateral policy this week and emergency liquidity assistance is set to be extended for another week”.
“The article probably helps support some of the better performance in Greek assets as well as the moves wider in core rates after earlier worries that an increase to haircuts on Greek collateral was a possibility this week”.
Key Quotes
“Away from the data, Greek headlines yesterday were focused on an article published in the FT which suggested that the IMF may cut off its support to Greece unless European lenders write down significant amounts of its sovereign debt”.
“The article suggests that the IMF may hold back its portion (around half) of the €7.2bn tranche of bailout aid that Greece is in talks over”.
“The article does appear to be somewhat backdated however, with the note referring to data arising from the eurozone finance ministers meeting in Riga last month which showed Greece would post a primary deficit of up to 1.5% of GDP, well below the 3% primary surplus target”.
“More importantly however, a Reuters article yesterday reported that the ECB is unlikely to change the collateral policy this week and emergency liquidity assistance is set to be extended for another week”.
“The article probably helps support some of the better performance in Greek assets as well as the moves wider in core rates after earlier worries that an increase to haircuts on Greek collateral was a possibility this week”.