11 Feb 2015
Greece closer to a resolution? – Investec
FXStreet (Barcelona) - The Investec Team shares that with speculation going on that the EC may grant Greece another six months to renegotiate their position and the Troika might see some amending, some resolution for Greek problems might be closer.
Key Quotes
“Primarily, reports suggested the European Commission (EC) may grant Greece an extra six months grace to renegotiate their position, one would guess through some kind of bridging loan.”
“Within the other rumoured common ground, reports included amending the Troika (the Greek government’s proposal includes incorporating the Organisation for Economic Co-operation and Development in 10 new reforms which could tie in with the reported EC proposal of reorganising the Troika).”
“The Euro rally didn't gain too much momentum though as by the afternoon session Germany's Schaeuble had hit the wires to say reports the European Commission were to grant Greece six months are 'wrong' and he went one step further by saying if Greece doesn't want a new programme, then 'it's all over'. Certainly the hardened German stance does not seem to be softening moving into today's negotiations.”
“Markets will keep focus on Greece today as the Eurogroup holds its emergency meeting in Brussels where Greek Finance Minister Varoufakis is expected to lay out a proposal for a 'bridging agreement' that should provide further time for negotiations of a possible debt swap.”
“Positions will need to soften significantly to find a short-term agreement, but given the high stakes, one would expect at least some progress in laying out a timeframe for future discussions.”
“Some form of technical extension, or bridging, is likely a pre-requisite for the European Central Bank to grant permission for the continued financing of Greek banks through the ELA procedure.”
Key Quotes
“Primarily, reports suggested the European Commission (EC) may grant Greece an extra six months grace to renegotiate their position, one would guess through some kind of bridging loan.”
“Within the other rumoured common ground, reports included amending the Troika (the Greek government’s proposal includes incorporating the Organisation for Economic Co-operation and Development in 10 new reforms which could tie in with the reported EC proposal of reorganising the Troika).”
“The Euro rally didn't gain too much momentum though as by the afternoon session Germany's Schaeuble had hit the wires to say reports the European Commission were to grant Greece six months are 'wrong' and he went one step further by saying if Greece doesn't want a new programme, then 'it's all over'. Certainly the hardened German stance does not seem to be softening moving into today's negotiations.”
“Markets will keep focus on Greece today as the Eurogroup holds its emergency meeting in Brussels where Greek Finance Minister Varoufakis is expected to lay out a proposal for a 'bridging agreement' that should provide further time for negotiations of a possible debt swap.”
“Positions will need to soften significantly to find a short-term agreement, but given the high stakes, one would expect at least some progress in laying out a timeframe for future discussions.”
“Some form of technical extension, or bridging, is likely a pre-requisite for the European Central Bank to grant permission for the continued financing of Greek banks through the ELA procedure.”