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25 May 2015
Greece noise continues – RBS
FXStreet (Barcelona) - Greg Gibbs, FX Trading Strategist at RBS, comments on the new developments surrounding Greece and its repayment commitment to the IMF, noting that these reports on Greece is nothing more than noise for the EUR.
Key Quotes
“Greece has warned for a second time that it will not be capable of making IMF repayments in early-June. It made a similar warning earlier this month and made its payment. But at that time it had to rely on drawing down its SDR assets held at the IMF. These are largely depleted and this option will not cover payments due in early-June.”
“While this may not immediately trigger a crisis, since IMF rules would allow Greece to be overdue for three months, it would be an historic payment miss for a developed country.”
“The core EU members have set a deadline of the end of this month for an agreement with Greece on a new bailout deal. While reports suggest negotiations have made significant progress over the last month, they appear to have stalled again and the last mile is always the hardest.”
“Over the weekend, Interior Minister Niko Voutsis said on Greek TV that Greece couldn’t pay the IMF in June without a deal.”
“Finance Minister Yanis Varoufakis said on the BBC that, “Greece has made enormous strides reaching a deal, it is now up to the institutions to do their bit.” German Finance Minister Schaeuble said in the German media that Greece has to fulfil its commitments.”
Key Quotes
“Greece has warned for a second time that it will not be capable of making IMF repayments in early-June. It made a similar warning earlier this month and made its payment. But at that time it had to rely on drawing down its SDR assets held at the IMF. These are largely depleted and this option will not cover payments due in early-June.”
“While this may not immediately trigger a crisis, since IMF rules would allow Greece to be overdue for three months, it would be an historic payment miss for a developed country.”
“The core EU members have set a deadline of the end of this month for an agreement with Greece on a new bailout deal. While reports suggest negotiations have made significant progress over the last month, they appear to have stalled again and the last mile is always the hardest.”
“Over the weekend, Interior Minister Niko Voutsis said on Greek TV that Greece couldn’t pay the IMF in June without a deal.”
“Finance Minister Yanis Varoufakis said on the BBC that, “Greece has made enormous strides reaching a deal, it is now up to the institutions to do their bit.” German Finance Minister Schaeuble said in the German media that Greece has to fulfil its commitments.”