28 Apr 2015
Greek PM Tsipras reshuffles negotiating team - ANZ
FXStreet (Bali) - The ANZ Research Team reviews Monday's Greek debt negotiations, noting that Greek Prime Minister Tsipras has overhauled his bailout negotiating team, sidelining Finance Minister Varoufakis.
Key Quotes
"The big news overnight was that Greek Prime Minister Tsipras has overhauled his bailout negotiating team, sidelining Finance Minister Varoufakis. Deputy Foreign Minister Euclid Tsakalotos will instead assume responsibility for the day-to-day negotiations."
"Varoufakis was a stanch supporter of Greek interests and took a firm stance in negotiations with European creditors. This saw him remain a popular figure with Greek voters, even though overall Greek government approval ratings have fallen sharply over recent months."
"But his hard-line stance did not sit well with other European Finance Ministers, with Bloomberg reporting that in meetings on Friday he was called a “time-waster, gambler and an amateur” by the very people he was trying to strike a deal with."
"The move overnight was greeted favourably by markets. The Athens stock exchange closed 4.4% higher, while 3-year Greek bond yields declined just shy of 400bps. The positive sentiment spilled over into other European markets. So is this a game-changer or does it just shuffle the deck chairs on a ship that is taking on water? We will of course have to wait and see."
"But time is not necessarily on the negotiators’ sides. While an earlier decree for Greek cities to transfer their cash reserves to the central bank will buy some time (reportedly until June), there has been some push-back, with the Central Union of Greek Municipalities stating that it will not commit these funds until it is explained how they will be managed. Pressure is coming from a number of angles."
Key Quotes
"The big news overnight was that Greek Prime Minister Tsipras has overhauled his bailout negotiating team, sidelining Finance Minister Varoufakis. Deputy Foreign Minister Euclid Tsakalotos will instead assume responsibility for the day-to-day negotiations."
"Varoufakis was a stanch supporter of Greek interests and took a firm stance in negotiations with European creditors. This saw him remain a popular figure with Greek voters, even though overall Greek government approval ratings have fallen sharply over recent months."
"But his hard-line stance did not sit well with other European Finance Ministers, with Bloomberg reporting that in meetings on Friday he was called a “time-waster, gambler and an amateur” by the very people he was trying to strike a deal with."
"The move overnight was greeted favourably by markets. The Athens stock exchange closed 4.4% higher, while 3-year Greek bond yields declined just shy of 400bps. The positive sentiment spilled over into other European markets. So is this a game-changer or does it just shuffle the deck chairs on a ship that is taking on water? We will of course have to wait and see."
"But time is not necessarily on the negotiators’ sides. While an earlier decree for Greek cities to transfer their cash reserves to the central bank will buy some time (reportedly until June), there has been some push-back, with the Central Union of Greek Municipalities stating that it will not commit these funds until it is explained how they will be managed. Pressure is coming from a number of angles."