13 Jul 2015
Greece deal, just temporary relief for the euro ?- FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the euro jumped against the greenback to a daily high of 1.1196 after Europe announced they came to a deal with Greece.
Key Quotes:
"The country was forced into harsher terms that those rejected by voters in the referendum that took place last July 5th, and is just the base for an agreement, as the Greek Parliament is still to approve it before the real negotiations begin."
"Among others, the creditors have demanded pension cuts, higher taxes, and the creation of an independent fund, to which the Greek government should transfer €50bn of Greek assets that will be monetize for privatization, bank recapitalization and/or debt repayment."
"Tsipras on the other hand, said that creditors also compromised to do some debt restructuring. In the meantime, Greeks bank´s holiday has been extended through July 15th, and the general sense is that, despite there will be no Grexit, the solution is just temporal, as it will end up meaning further recessional pressures for the country that will end up with a larger, unaffordable debt, in a few years."
Key Quotes:
"The country was forced into harsher terms that those rejected by voters in the referendum that took place last July 5th, and is just the base for an agreement, as the Greek Parliament is still to approve it before the real negotiations begin."
"Among others, the creditors have demanded pension cuts, higher taxes, and the creation of an independent fund, to which the Greek government should transfer €50bn of Greek assets that will be monetize for privatization, bank recapitalization and/or debt repayment."
"Tsipras on the other hand, said that creditors also compromised to do some debt restructuring. In the meantime, Greeks bank´s holiday has been extended through July 15th, and the general sense is that, despite there will be no Grexit, the solution is just temporal, as it will end up meaning further recessional pressures for the country that will end up with a larger, unaffordable debt, in a few years."