8 May 2015
EU-Greece debt talks set to last for longer – DB
FXStreet (Edinburgh) - Analyst Jim Reid at Deutsche Bank reviewed the recent past and future steps in the renegotiation of the Greek debt.
Key Quotes
“Moving on, the Greece talks look set to continue beyond next Monday as both Greek finance minister Varoufakis and his German counterpart Schaeuble reiterated their low expectations for an outcome on Monday”.
“The latter said yesterday that ‘one shouldn’t expect spectacular results on Monday’ and that handing out aid to Greece without any reforms in place is a ‘bottomless pit that doesn’t make sense’, while Varoufakis was quoted as saying that Greece is prepared to go ‘down to the wire’ but that ‘certainly we’re going to have an agreement in the next couple of weeks or so’.
“One potential development to keep an eye on next week is the suggestions of any changes to haircuts to Greek collateral. Greek press Ekathimerini reported that the ECB is expected to decide after Monday’s Eurogroup whether or not to tighten the screws on liquidity with haircut changes being a potential measure”.
“That decision will likely be based on whether or not enough ‘progress’ is being made on talks, for which we likely won’t know until leaks post the meeting”.
Key Quotes
“Moving on, the Greece talks look set to continue beyond next Monday as both Greek finance minister Varoufakis and his German counterpart Schaeuble reiterated their low expectations for an outcome on Monday”.
“The latter said yesterday that ‘one shouldn’t expect spectacular results on Monday’ and that handing out aid to Greece without any reforms in place is a ‘bottomless pit that doesn’t make sense’, while Varoufakis was quoted as saying that Greece is prepared to go ‘down to the wire’ but that ‘certainly we’re going to have an agreement in the next couple of weeks or so’.
“One potential development to keep an eye on next week is the suggestions of any changes to haircuts to Greek collateral. Greek press Ekathimerini reported that the ECB is expected to decide after Monday’s Eurogroup whether or not to tighten the screws on liquidity with haircut changes being a potential measure”.
“That decision will likely be based on whether or not enough ‘progress’ is being made on talks, for which we likely won’t know until leaks post the meeting”.