25 Mar 2015
Greece talks: deal will be struck shortly – BBH
FXStreet (Barcelona) - With Greece set to submit reforms for the third time, the Brown Brothers Harriman Team believes that a Greek deal might be struck shortly as brinkmanship tactics require going to the brink.
Key Quotes
“Greece remains very much in focus today though local markets are closed for Independence Day. The government has reportedly been resorting to swaps with various government arms (e.g. public health fund and Athens metro) to raise short-term cash.”
“The ESM meets and appears to be possibly preparing for some micro-tranche payment as early as next week, IF the Greek government submits, for the third time, a set of reform proposals that its official creditors will find credible.”
“The ECB will also hold a call today and may expand ELA funding authorization, but Greek banks have been banned from buying any more government T-bills.”
“The purpose of the ELA is to meet the banks' liquidity needs, not as a back door funding facility for the government.”
“We continue to believe a deal will be struck shortly, and the Grexit fears will ease (though may return toward the end of next month).”
“Some observers, like Soros, have recently suggested that odds of an exit are 50/50.”
“Brinkmanship tactics require going to the brink. One of the problems with such tactic is that it wastes time during which the country's economic and financial conditions deteriorate.”
Key Quotes
“Greece remains very much in focus today though local markets are closed for Independence Day. The government has reportedly been resorting to swaps with various government arms (e.g. public health fund and Athens metro) to raise short-term cash.”
“The ESM meets and appears to be possibly preparing for some micro-tranche payment as early as next week, IF the Greek government submits, for the third time, a set of reform proposals that its official creditors will find credible.”
“The ECB will also hold a call today and may expand ELA funding authorization, but Greek banks have been banned from buying any more government T-bills.”
“The purpose of the ELA is to meet the banks' liquidity needs, not as a back door funding facility for the government.”
“We continue to believe a deal will be struck shortly, and the Grexit fears will ease (though may return toward the end of next month).”
“Some observers, like Soros, have recently suggested that odds of an exit are 50/50.”
“Brinkmanship tactics require going to the brink. One of the problems with such tactic is that it wastes time during which the country's economic and financial conditions deteriorate.”