24 Jun 2013
Flash: Greek situation worsens – Investec
FXstreet.com (New York) - According to Lee McDarby, Corporate Treasury at Investec, “The finance situation in Greece took another turn for the worst over the weekend as Greece finds itself staring down the financial barrel again, as euro central banks are being difficult about rolling some of their Greek holdings.”
“Unless the issue is resolved the IMF is threatening to withhold funding from July onwards. The prospect of these problems being resolved was dealt a serious blow following the fallout over the closure of the state television station, which has lead, the Democratic Left Party to withdraw its ministers from the ruling coalition.” McDarby adds.
As it stands this should leave the remaining coalition members New Democracy and PASOK with only 153 seats in the 300 seat parliament, but despite the Democratic Left's backing for reforms, this reduced majority will likely make reforms harder to pursue and suggests Greece could start to struggle to meet Troika demands again over the months ahead.
“Unless the issue is resolved the IMF is threatening to withhold funding from July onwards. The prospect of these problems being resolved was dealt a serious blow following the fallout over the closure of the state television station, which has lead, the Democratic Left Party to withdraw its ministers from the ruling coalition.” McDarby adds.
As it stands this should leave the remaining coalition members New Democracy and PASOK with only 153 seats in the 300 seat parliament, but despite the Democratic Left's backing for reforms, this reduced majority will likely make reforms harder to pursue and suggests Greece could start to struggle to meet Troika demands again over the months ahead.